World Economy

European Stocks Slide for Third Day

European Stocks Slide for Third DayEuropean Stocks Slide for Third Day

A third day of losses sent European stocks toward a second weekly decline and an almost two-week low, as investors awaited a US jobs report.

The Stoxx Europe 600 Index dropped 0.5% in London, as all industry groups except miners declined. The benchmark has declined 0.5% this week, as its longest stretch without losses in almost a year unraveled amid concern the European Central Bank may turn less accommodative, Bloomberg reported.

Investors are awaiting more evidence on the health of the US economy to gauge the prospects for another Federal Reserve rate increase this year. Payrolls rose at a faster pace in September from a month earlier, economists forecast before the release due later today. Traders are pricing in a 24% chance of a hike in November and 64% probability of one in December.

The Dow Jones industrial average fell 12.53 points, or 0.07%, to 18,268.5, the S&P 500 gained 1.04 points, or 0.05%, to 2,160.77 and the Nasdaq Composite dropped 9.17 points, or 0.17%, to 5,306.85.

Declining issues outnumbered advancing ones on the NYSE by a 1.26-to-1 ratio; on Nasdaq, a 1.54-to-1 ratio favored decliners.

About 6.32 billion shares changed hands in US exchanges, compared with the 7.1 billion daily average over the last 20 sessions.

Twitter shares plunged 20.1% to $19.87 as fears mounted that a much-anticipated auction of the social media company will draw minimal interest from potential buyers.

Wal-Mart dropped 3.2% to $69.36 and weighed the most on the S&P 500 after the world’s largest retailer forecast flat earnings for next year.

The largest percentage gainer on the S&P 500 was Whole Foods, which rose 4.9% to $29.33.

 In Asia

Most Asian stocks fell on Friday after a sudden plunge in the pound rattled investors.

About three stocks declined for every two that rose on the MSCI Asia Pacific Index and US equity index futures retreated. The pound tumbled as much as 6.1%, its biggest intra-day slide since Brexit, before recovering the bulk of its loss amid speculation automated trades may have been a factor.

Yields on 10-year Australian and New Zealand debt have risen every trading day this week, with benchmark Treasuries headed for their worst weekly drop since mid-July.

The MSCI Asia Pacific Index was little changed on the day in Tokyo, leaving it set for a 0.6% weekly advance. Benchmarks declined in Australia, Japan and South Korea. Samsung Electronics Co. gained 0.6% after reporting a higher quarterly operating profit than analysts forecast.

Futures on the S&P 500 Index slipped 0.2%, after the underlying measure added 0.1% on Thursday.


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