NEW YORK-US stocks fell sharply Monday, joining European equities in retreat after poor Chinese industrial data deepened worries about the world’s second-biggest economy.
Media General rose by 22.3% to US$13.64 while Nexstar fell 95 cents to US$43.58 as investors applauded the deal, which values the local television station owner at US$1.85bn.
In Europe, Glencore plunged 24 percent after an investment bank warned that the company faced a bleak future if commodity prices don’t recover. The Democratic presidential candidate Hillary Clinton had already thrown the gauntlet in the ring against such “price gouging” by pharma companies. Investors are “naturally…going to express a few type of concern”.
Jim Hartwell, president and chief executive of Deer Park, Ill.-based asset manager Essex LLC, which has about $200 million under management, said he has reduced exposure to biotech stocks by about 15% over the past year because the sector had appreciated so much.
“Glencore has taken proactive steps to position our company to withstand current commodity market conditions”, spokesman Charles Wantephul said in an email. Brent crude, used to price global oils, shed 38 cents to $48.89 in London after rising 41 cents the previous session to $49.27.
The sharp decline on Monday dragged the major averages down to their lowest levels in a month amid widespread uncertainty about interest rates and the global economy.
Apple fell 1.3 percent to $113.20 despite reporting that it sold a record number of its new iPhones in the first weekend on the market.
THE SLUMP: Stocks have fallen sharply in August and September on concern that a slowdown in China, the world’s second-largest economy, is worse than previously thought.
Expectations the Federal Reserve will raise interest rates by year-end led to the rise of the USA dollar on Sept 28, 2015. Mr Dudley also emphasised that a rate increase could come at any Fed meeting, including in October.
The week will culminate with non-farm payrolls data on Friday.
USA government bond prices rose, pushing the yield on the 10-year Treasury note down to 2.10 percent from 2.16 percent on Friday.
“If we’re in an economic situation where we can’t support [a quarter basis- point rate increase], then we’re in bigger trouble than we all realise”, he said.
U.S.-listed shares of Novo Nordisk AS(NOVO-B.KO) climbed 5.2% ahead of the bell after the Food and Drug Administration approved the Danish drug maker’s long-acting Tresiba insulin product. Upon joining OANDA in 2007, he established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends.
Mining, energy and basic materials stocks also fell hard.
VW LOWER AGAIN: Volkswagen shares were down 6.5 percent at 108 euros as German prosecutors opened an investigation against the company’s former CEO, Martin Winterkorn, to establish what his role was in the emissions-rigging scandal. The Dow Jones was down 0.4% while the S&P500 was down 1.4%. The dollar fell 0.7 per cent against the yen.