View the article online at http://citywire.co.uk/money/article/a873607
Overnight Markets: Dow plunges 365 points as selloff resumes
Volatility in oil prices overshadowed better-than-feared trade data out of China that initially lifted sentiment in equities and commodities.
Wall Street tumbled on Wednesday to their lowest close since September, with the Dow Jones plunging more than 360 points, and oil prices gave up an early rally on mounting worries about the global economy.
The Dow Jones industrial average fell 365 points, or 2.21%, to 16,151, the S&P 500 lost 48 points, or 2.5%, to 1,890 and the Nasdaq Composite dropped 160 points, or 3.41%, to 4,526.
Benchmark Brent crude slipped below $30 a barrel, a day after US oil prices breached that level. Volatility in oil prices overshadowed better-than-feared trade data out of China that initially lifted sentiment in equities and commodities. Exports from the country fell 1.4% from a year earlier.
"There is a fear that the global economy and the U.S. economy as well could lapse into a recession given the fall in energy prices and greater economic weakness overseas," said Tim Ghriskey, chief investment officer of Solaris Asset Management in New York.
An early rally evaporated for a third day as declines in consumer discretionary companies paced the selloff. BorgWarner Inc. led with a 9.5% decline after providing 2016 sales guidance that fell short of previous estimates.
Netflix lost 8.6%, the most since October 2014, while Ford Motor Co. and Delphi Automotive Plc slumped at least 5%. Home Depot Inc. dropped 4.8%, the worst in the Dow, and its steepest retreat since 2011. Amazon.com Inc. plunged 5.8%.
Banks sank to their lowest close since May 2014, and energy companies fell with crude. Express Scripts Holding Co. lost 6.4% and biotechnology companies tumbled to weigh on the health-care group. AbbVie Inc. and Celgene Corp. decreased more than 5.6%
The US dollar edged down 0.05% against a basket of currencies, set to break a three-day winning streak. The euro was little changed against the dollar.
In Asia, major stock markets tumbled Thursday morning, following a massive sell-off on Wall Street overnight.Chinese markets opened in negative territory, with the Shanghai Composite down some 1.68%. Hong Kong's Hang Seng index was down 1.87%. Japan's Nikkei 225 erased all of Wednesday's 2.88% gain and plunged 3.86%. South Korea's Kospi traded down 1.40%. Down Under, the ASX 200 dropped 1.77%.
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by Gavin Lumsden on Jan 20, 2017 at 17:01