Equities and dollar slump as global growth woes multiply

Wall Street slumped on Thursday as anxieties about global economic growth smothered a short-lived, Federal Reserve-sparked rally in equity markets around the world.

Energy stocks were big losers on Wall Street, where leading indices were off sharply at mid session. The MSCI index of world stocks was off 0.9 per cent at 407.53. The Dow Jones industrial average fell 311.82 points, or 1.83 per cent, to 16,682.4, the S&P 500 lost 36.73 points, or 1.87 per cent, to 1,932.16 and the Nasdaq Composite dropped 83.10 points, or 1.86 per cent, to 4,385.49.

The S&P Energy Index was down 3.5 per cent on Thursday, a day after investors gave the US stock market its best day of the year as Fed meeting minutes suggested the central bank would not rush interest-rate hikes.

Brent oil fell below $90 a barrel. Prices have been hurt by a supply glut and concerns about global economic growth and are now down 20 per cent from June. Brent for November delivery was last down $1.16 at $90.22. US November crude lost $1.48 to $85.83.

The dollar dropped to a three-week low against the yen as investors took profit and pared back bullish bets on the greenback. The dollar was last off 0.20 per cent to 107.92 yen.

Spot gold rose to its highest since September 23 at $1,233.20 an ounce early on Thursday and was trading up 0.3 per cent at $1,224.86.

US long-dated and benchmark Treasuries yields hit their lowest levels in over a year. Yields on 30-year Treasury bonds hit 3.029 per cent, their lowest since May 2013, while benchmark 10-year yields hit 2.279 per cent, lowest since June 2013. Benchmark 10-year U.S. Treasury notes were last off 1/32 in price to yield 2.33 per cent. US 30-year Treasury bonds were last off 4/32 to yield 3.068 per cent.