US stocks abruptly changed course again Tuesday and took large losses.
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Federal Reserve Governor Lael Brainard cools speculation about a rise in interest rates.
In Asia, share markets were trading mixed on Wednesday in late morning session amid USA losses and lower oil prices.
Oil prices were down about 2 percent after the International Energy Agency said a sharp slowdown in global oil demand growth. Technology companies also rose.
“That mindset is causing back and forth swings in the past few days”.
The S&P 500 has dropped 0.9% to 2,140.06, while the Dow Jones Industrial Average has fallen 151.55 points, or 0.8%, to 18,173.52. Economists say December is the most likely time for the Fed to hike rates for the first time this year. The price of oil has plunged over the last two years as an enormous supply glut built up while growth in demand slowed.
Mr. Juvyns highlighted a number of uncertainties including the USA presidential elections in November, a likely rate rise before year-end, the United Kingdom starting formal negotiations to leave the European Union and hopes for a transition from monetary policy to fiscal policy underpinning global growth. On the Nasdaq, 1,221 issues fell and 1,131 advanced.
Crude prices rose 0.53 percent after a smaller-than-expected build in USA crude stockpiles.
Exxon Mobil sank $2.08, or 2.4 percent, to $85.21 and Marathon Oil stumbled $1.13, or 7.3 percent, to $14.34.
Anadarko Petroleum was down 4.4 percent at $55.30 after it agreed to buy Freeport McMoRan’s Gulf of Mexico assets. Anadarko stock sank 1.9% to $56.67 and Freeport-McMoRan skidded 6.1% to $10.40. Worries include fears that higher interest rates will hurt the economy, overvalued stock prices and continued uncertainty over the presidential election and the strength of the economy.
Apple was up 1.6 percent, giving the three major indexes their biggest boost and rising for the third day in a row on reports of strong demand for the new iPhones.
BONDS AND CURRENCIES: Bond prices were little changed. The yield on the 10-year Treasury note held steady at 1.67 percent. Yields, which move in the opposite direction of price, have jumped more than 20 basis points from an intraday low of 1.516% a week ago. Both yields are the highest they’ve been since late June, right before Britain voted to leave the European Union. A calm summer of trading that saw the S&P 500 drift to another record high on August 15 has given way to talk of a possible pullback in prices. On Monday, the benchmark ASX 200 closed down 119.58 points, or 2.2 percent, at 5219.6.
Intersil jumped 9.8 percent to $21.70 after Renesas Electronics agreed to buy the chipmaker. Renesas’ offer values the Milpitas, Calif., company at $22.50 a share, or $3.05 billion. Intersil climbed $1.94, or 9.8 percent, to $21.70. The biggest weight on the economy has been rising concern that the USA stock market and other financial assets have been artificially inflated due to the easy-money policies of central bankers. Weight Watchers more than doubled after the company announced that Oprah Winfrey, who has touted the company’s products, bought a 10% stake and joined the board of directors. But the stock has given up some of its gains lately.
In other energy trading, wholesale gasoline lost 1 cent to $1.38 a gallon. The oil and gas subindex of the Stoxx Europe 600 declined 2.8%, but remains up 5.2% this year.
Gold dipped $1.90 to $1,323.70 an ounce.
Oil prices, which fell 3% on Tuesday and was a factor in the steep slide in stock prices, were showing weakness again.
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In foreign-exchange markets, the WSJ Dollar Index, which measures the US currency against a basket of others, was 0.2% higher Tuesday, clawing back some of Monday’s losses. The euro inched down to $1.1237 from $1.1241. In Japan the Nikkei 225 gained 0.3 percent and South Korea’s Kospi rose 0.4 percent. The FTSE 100 index of leading British shares was unchanged. Asian stocks mostly rallied.
