US stocks slip as Turkey crisis drags bank shares
US stocks slid on Friday as a deepening economic crisis in Turkey dragged on bank shares and triggered a move out of riskier assets.
The Dow and S&P 500 posted declines for the week following five straight weeks of gains, but the S&P 500 remains just 1.4 percent below its record high from Jan. 26.
A drop in technology shares added to the day’s bearish tone. The S&P technology index .SPLRCT fell 0.8 percent, with Intel down 2.6 percent after Goldman Sachs downgraded the stock to “sell.” Microchip Technology shares fell 10.9 percent after a disappointing second-quarter revenue forecast.
A slump in the Turkish lira worsened after US President Donald Trump doubled tariffs on steel and aluminum imported from the country.
The S&P financial index fell 1.2 percent, among the biggest drags on the S&P 500. The Dow Jones Industrial Average fell 196.09 points, or 0.77 percent, to 25,313.14, the S&P 500 lost 20.3 points, or 0.71 percent, to 2,833.28 and the Nasdaq Composite dropped 52.67 points, or 0.67 percent, to 7,839.11.
For the week, the Dow fell 0.6 percent and the S&P 500 dipped 0.3 percent. The Nasdaq gained 0.3 percent for the week after strong gains in some technology shares.
Citigroup), the most global of the major US banks, fell 2.4 percent. JPMorgan, Wells Fargo and Bank of America were also lower.
Tesla shares ended up 0.9 percent. The number of Tesla shares sold short rebounded and are now higher than before Chief Executive Elon Musk on Tuesday proposed taking the electric car maker private.
Declining issues outnumbered advancing ones on the NYSE by a 2.10-to-1 ratio; on Nasdaq, a 1.51-to-1 ratio favored decliners. The S&P 500 posted 12 new 52-week highs and 10 new lows; the Nasdaq Composite recorded 87 new highs and 102 new lows. About 6.7 billion shares changing hands on US exchanges. That compares with the 6.4 billion-share daily average for the past 20 trading days, according to Thomson Reuters data.
European shares plummet
European shares fell on Friday as a dramatic fall in the Turkish lira jolted markets, with banks such as Spain’s BBVA and Italy’s UniCredit hit by worries over their exposure to Turkey.
The pan-European STOXX 600 index closed down 1.1, losing 0.9 percent on the week, as investors fretted about the political and economic repercussions of the Turkish crisis.
The Turkish lira fell to record lows as concerns over a widening rift with the United States persisted after a Turkish delegation returned from talks in Washington with no apparent solutions.
Germany’s exporter-heavy DAX index fell 2 percent, underperforming the broader market, while Milan was the hardest-hit major European index and lost 2.5 percent, its lowest level since July last year.
Banks were among the biggest fallers after the Financial Times reported that the European Central Bank is concerned about the exposure of some of the euro area’s biggest lenders to Turkey in light of the currency fall.
Shares in France’s BNP Paribas, Italy’s UniCredit and Spain’s BBVA fell 3 percent, 4.7 percent and 5.1 percent respectively. STMicro, Siltronic, Infineon and AMS lost 5.1 percent, 6.3 percent, 2.8 percent and 3.9 percent.
Singapore falls over 1pc
Singapore shares fell over 1 percent on Friday as global trade worries and weak oil prices hurt investor risk appetite, while most other Southeast Asian stock markets were subdued in the absence of supportive news.
Singapore’s FTSE Straits Times Index closed 1.3 percent lower, but posted a rise of 0.6 percent for the week in their fourth weekly gain in five. Holdings Ltd shedding 1.6 percent, while Oversea-Chinese Banking Corp Ltd declined 1.7 percent.Among other losers, Keppel Corp Ltd fell 2.9 percent.
Indian shares retreat from record high
Indian shares fell on Friday, after touching record highs for four straight sessions, dragged down by financials such as State Bank of India and ICICI Bank Ltd.
Shares of State Bank of India fell 4.1 percent after the country’s biggest lender by assets reported a bigger-than-expected quarterly loss.
The broader NSE index ended 0.36 percent lower at 11,429.50, gaining 0.60 percent for the week. The benchmark BSE index closed down 0.41 percent at 37,869.23, but posted a weekly rise of 0.83 percent.
Asia markets sink at end of upbeat week
Asian markets fell on Friday after a broadly positive week as traders await the latest developments in the China-US trade row, while the Turkish lira briefly dived 12 percent to fresh record lows buffeted by a diplomatic row with Washington.After last week’s turmoil, the past five days have seen investors a little more positive as they took in stride tit-for-tat threats of tariffs from the world’s top two economies, though the fears of an all-out trade war are keeping everyone on their toes.
However, on Friday Hong Kong fell one percent after a four-day win streak. Tokyo shed 1.3 percent despite data showing the Japanese economy grew more than expected in the second quarter. The outlook was dimmed by concerns about a trade war with the United States. Sydney was down 0.3 percent, Singapore shed 1.3 percent and Seoul dropped 0.9 percent. Taipei, Mumbai, Manila and Bangkok also lost ground. However, Shanghai ended the day marginally higher.
Tokyo stocks close lower
Tokyo stocks closed lower on Friday as investors held off on buying before holidays and awaited the outcome of US-Japan trade talks.
The Nikkei 225 index fell 1.33 percent or 300.31 points to 22,298.08. Over the week, the benchmark lost 1.01 percent. The broader Topix index lost 1.15 percent or 20.00 points to 1,720.16, after falling 1.29 percent over the week. The dollar slipped to 110.94 yen from 111.09 yen in New York Thursday afternoon.In individual stocks trade, Toyota ended down 0.55 percent at 6,951 yen while Suzuki rallied 1.67 percent to 7,060 yen after sharp drops the previous day over its admission of improper inspections on some vehicles.
Gulf stocks slide on volatile oil, property
Gulf stocks were mostly lower, as volatile oil prices hit petrochemical and energy firms in the Saudi market, while lower-than-expected earnings of property firm Aldar Properties weighed on the Abu Dhabi market.
Abu Dhabi slipped 1.1 percent, easing from a near four-year high on Wednesday. Aldar Properties dropped 2.5 percent, as investors were disappointed after the firm this week missed estimates with a 28 percent fall in second-quarter profit, which it blamed on a revaluation of properties related to its retail portfolio.First Abu Dhabi Bank also fell 2.4 percent. FAB shares have gained nearly 37 percent this year, fuelled by strong earnings and a move to expand in the Saudi market. In neighbouring Dubai, the index dropped almost 1 percent on selling in lender Emirates NBD which declined 2.9 percent. Contractor Arabtec also dropped 2.5 percent, after opening higher as it reported a 24 percent jump in quarterly profit.
Saudi stocks were down 0.4 percent, as sharp swings in oil prices hit sentiment. Oil prices were higher on Thursday, but fell over 3 percent on concerns about a trade dispute between the United States and China. The Qatari index fell almost 0.8 percent, dragged down by Industries Qatar which fell 2.3 percent despite reporting a rise in first half profits.
Canadian stocks rise
Canada’s main stock index rose on Thursday, as energy shares bounced back on higher oil prices and Saudi Arabia reassured Canada on oil supplies following an ongoing diplomatic dispute.
At 9:35 a.m. ET (1335 GMT), the Toronto Stock Exchange’s S&P/TSX Composite index was up 33.53 points, or 0.21 percent, at 16,348.61. The energy sector climbed 0.1 percent as oil rose after the first round of US sanctions against Iran came into effect. US crude prices were up 0.5 percent, while Brent crude added 0.6 percent. A row over human rights in Saudi Arabia will not have any impact on Saudi oil supplies to Canada, its energy minister said on Thursday, reassuring customers after Riyadh froze new trade with Canada and ruled out mediation efforts. On the TSX, 167 issues were higher, while 68 issues declined for a 2.46-to-1 ratio favouring gainers, with 7.32 million shares traded. Top percentage gainer on the TSX were shares of Pan Am Silver, which jumped 8.7 percent after posting higher quarterly revenues.