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Global stocks tumble after Trump 'crazy' Fed comment

AFP  |  Hong Kong 

Asian markets plunged Thursday morning following the worst session on Wall Street for months, as US said the had "gone crazy" with plans for higher interest rates.

The benchmark Nikkei 225, the Hang Seng in Hong Kong and the Shanghai Composite all plummeted more than three per cent in early morning trade, as investors fretted about surging interest rates and an ongoing trade war.

"All bets are off," warned Stephen Innes, at OANDA, adding that the markets "are fraught with peril." "The US equity bloodbath is taking no prisoners in as a sea of red greets investors at the open, as equity deleveraging and liquidation intensifies," he said.

plunged nearly six per cent, with down three per cent and and both falling two per cent.

The steep drop in followed a decline on Wall Street of nearly 830 points, the biggest fall since February, amid Trump's latest criticism of the Federal Reserve, the

The rout in US shares followed substantial losses on European bourses, due in part to tensions between and over Italian budget plans that have revived fears about the eurozone.

Bourses in and both lost more than two per cent, while fell 1.3 per cent.

"The selling is not panicking but it's persistent," said of the proceedings. "It's all about investors rethinking their exposure to stocks." Many of the biggest US names fell hard in Wednesday's session, with Apple, and all slumping more than four per cent and Amazon, and shedding more than five per cent.

Stocks have been under pressure since the yield on 10-year bonds jumped above three percent last week, a sudden move that raised fears of an overheating economy, speeding inflation and more aggressive interest rate increases.

Last week's jump in yields followed strong US data but many analysts have been anticipating a change in the dynamics in the bond market due to expectations that central banks in and will soon phase out bond-buying programmes.

"It's shifting the tectonic plates," said Jack Ablin, The turmoil on stock markets came a day after the slashed its global growth forecast on worries about trade wars and weakness in emerging markets.

In other markets, fell sharply on worries that Hurricane Michael, which is battering the US state of Florida, will dent demand for gasoline and other

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, October 11 2018. 09:55 IST