Australia Market tumble as Wall Streets slide sparks risk-off mood

Wall Street

Wall Street

But it did not take long for the initial excitement to subside towards a 4.2 per cent rise, to $2.60 per share. As markets opened on Thursday, the colour was red: China's Shanghai Composite Index lost as much as 2.8%, and Hong Kong's Hang Seng Index 2.4%.

On the futures markets, the ASX futures are pointing to a 73 points gain.

Thursday's tumble follows a fall by USA stocks overnight, which confirmed a correction for the Nasdaq and erased the Dow and S&P 500's gains for the year amid disappointing earnings, economic growth concerns, a spat between Italy and the European Union and the killing of a Saudi journalist. Netflix gave back 9.4 per cent to United States dollars 301.83 and Amazon dropped 5.9 per cent to USD 1,664.20.

The tech-heavy Nasdaq composite bore the brunt of the sell-off, leaving it more than 10 per cent below its August peak, what Wall Street calls a "correction".

Profits of S&P 500 companies are expected to have jumped almost 22 percent in the third quarter, slower than the previous two quarters, according to Refinitiv data.

The Dow tumbled 608.01 points, or 2.4 per cent, to 24,583.42.

Nasdaq futures were down 1.7 per cent and S&P500 futures were down one per cent on Friday afternoon.

The yen got the usual safe-haven bid, with the euro skidding to a two-month low at 127.68 yen.

Stocks are turning broadly lower in midday trading on Wall Street, extending a losing streak for the S&P 500 index to a sixth day.

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Disappointing quarterly results and outlooks continued to weigh on the market, stoking investors' jitters over future growth in corporate profits.

Texas Instruments, a major chipmaker, slumped 3.6 per cent after its results missed forecasts.

On Wednesday, data showed sales of new USA single-family homes fell to a near two-year low in September, the latest sign that rising mortgage rates and higher prices were hurting demand for housing.

The company, which came under intense scrutiny from the royal commission into the country's financial sector for wrongdoing earlier this year, also said it was contemplating an initial public offering for its New Zealand wealth management and advice businesses in 2019.

In Hong Kong, airline Cathay Pacific's shares dropped 6.5 per cent after it said it had discovered a data breach affecting 9.4 million passengers.

It rose 1.3 per cent to Dollars 354.65 after the defence contractor's latest quarterly results topped analysts' forecasts.

The S&P 500 index fell 16 points, or 0.6 per cent, to 2,724. It was down 227 points, or 0.9 percent, to 25,089. The Russell 2000 index of smaller-company stocks gave up 17 points, or 1.1 percent, to 1,509.

Bond prices rose. The yield on the 10-year Treasury note fell to 3.13 per cent.

USA stock index futures indicated a mixed start to the trading day amid a slew of corporate earnings reports. The company also raised its estimates for the year, citing faster orders for aircraft.

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