Global stocks tumble as Wall Street, Tokyo hit reverse

NEW YORK - Global stocks tumbled Thursday as disappointing earnings, profit taking and fears a US corporate tax cut will be delayed combined to drive major indices down.

US stocks closed lower after declines in Japan, London, Frankfurt and Paris. Major tech stocks saw heavy losses: Google-parent Alphabet fell a full percentage point, Microsoft gave up 0.6 percent and Apple lost 0.4 percent.

"A combination of profit taking and perhaps the prospect that maybe some key parts of the (tax reform) bill may be delayed is what is causing this," Peter Cardillo of First Standard Financial, said of the down day on Wall Street.

Japanese stocks also finished lower, suffering a sharp reverse after earlier hitting fresh 26-year highs, while most other Asian indices also fell.

"Markets took their cue from a volatile session in Japan, where the Nikkei performed an impressive handbrake turn after hitting fresh multi-year highs," said IG analyst Chris Beauchamp in London.

"This sudden drop after the relentless gains over the past two months caught investors on the hop."

TRUMP AND TRADE WITH CHINA

China and the United States meanwhile signed more than $250 billion in business deals, including $37 billion worth of Boeing planes, as US President Donald Trump held talks with Chinese counterpart Xi Jinping in Beijing.

Trump criticized Beijing's "one-sided and unfair" trade surplus but said he did not blame China for the situation, instead hitting out at prior presidents "for allowing this out-of-control trade deficit to take place and to grow."

On the upside in Asia, Shanghai and Hong Kong closed higher, with traders cheering forecast-beating inflation figures from China that provided fresh hopes the huge economy is stabilizing.

In London, shares in British luxury fashion giant Burberry slumped on disappointing earnings and a costly strategy overhaul. The group's share price tumbled 9.32 percent to £18, topping London's fallers board.

In Denmark, shares in Vestas, the world's largest wind turbine manufacturer, tumbled nearly 20 percent after the Danish firm tweaked its annual outlook and its quarterly net profit slid. By late afternoon, its shares were down 19.1 percent to 426.60 kroner (57.33 euros, $66.72), in a market down 2.8 percent overall.

KEY FIGURES AROUND 2200 GMT (6 a.m. Friday in Manila)

New York - DOW: DOWN 0.4 percent at 23,461.94 points (close)

New York - S&P 500: DOWN 0.4 percent at 2,584.62 (close)

New York - Nasdaq: DOWN 0.6 percent at 6,750.05 (close)

London - FTSE 100: DOWN 0.6 percent at 7,484.10 (close)

Frankfurt - DAX 30: DOWN 1.5 percent at 13,182.56 (close)

Paris - CAC 40: DOWN 1.2 percent at 5,407.75 (close)

EURO STOXX 50: DOWN 1.1 percent at 3,612.50 (close)

Tokyo - Nikkei 225: DOWN 0.2 percent at 23,868.71 (close)

Hong Kong - Hang Seng: UP 0.8 percent at 29,136.57 (close)

Shanghai - Composite: UP 0.4 at 3,427.79 (close)

Euro/dollar: UP at $1.1642 from $1.1619 at 2200 GMT

Pound/dollar: UP at $1.3145 from $1.3105

Dollar/yen: DOWN at 113.42 yen from 113.46 yen

Oil - Brent North Sea: UP 44 cents at $63.93 per barrel

Oil - West Texas Intermediate: UP 36 cents at $57.17

source: news.abs-cbn.com

Three-day rally pushes oil prices to 2015 highs

NEW YORK - Oil prices surged higher for a third straight day Tuesday, hitting late-2014 peaks on hopes of rebounding global energy demand and production cuts that could curb the supply glut.

The US benchmark, West Texas Intermediate for March delivery, soared $3.48, or seven percent, to $53.05 a barrel, the highest WTI close since December 31.

In London, Brent North Sea crude for delivery in March jumped $3.16 (5.8 percent) to settle at $57.91, its best reading since December 30.

"The strong rally continues in the oil market as both Brent and WTI front-month futures extended gains and climbed higher... supported by increased appetite amid hopes of a rebound of the global oil demand in the first half of 2015," said Myrto Sokou, analyst at Sucden brokers.

WTI has gained $8.53, or nearly 20 percent, since the rally began Friday on signs the industry is quickly tightening exploration activities.

The Baker Hughes North America rig count reported on Friday fell sharply for the week to January 30, dropping by 128 rigs to 1,937 for the week to January 30. That compared with 2,393 a year ago.

Deep cuts in capital spending by major oil companies, including new announcements Tuesday by BP and BG Group, also suggested there would be tighter supplies in the future.

"A lot of factors are at play. Obviously, the capital spending cuts just keep coming, with BP, and we're seeing one of the fastest drops of spending across the sector I can remember," said Phil Flynn of Price Futures Group.

In addition, the oil market was feeling the pinch of a weaker dollar Tuesday, he said. "It's not just about supply and demand -- the dollar definitely has an influence."

Some analysts cautioned the current oil price rebound likely would not last because supplies still far outweigh demand.

"Oil ... has enjoyed the combination of weakening supply and rising demand fundamentals to maintain its surge for another day," said Chris Beauchamp, market analyst at trading firm IG.

"Oversupply does not disappear overnight, however, and the jury is still out on whether this bounce (in prices) has much further to run."

source: www.abs-cbnnews.com