Global stocks dip taking cue from Wall Street, doubts on oil

TOKYO – Global markets fell Wednesday, after a dismal day on Wall Street marked by disappointing earnings news and lingering doubts about the direction of oil prices.

KEEPING SCORE: France’s CAC 40 slipped 0.4 per cent to 4,452.86 in early trading, and Germany’s DAX fell 0.1 per cent to 10,563.61. Britain’s FTSE 100 was down 0.5 per cent at 7,034.92. U.S. shares were also set to drift lower with Dow futures down 0.1 per cent to 18,044. S&P 500 futures slipped 0.2 per cent to 2,131,20.

THE QUOTE: “After resisting the sell-off in bonds and rising yields for nearly two weeks, U.S. equity markets finally bowed to pressure last night, dropping below the recent trading range,” Ric Spooner, chief market analyst for CMC Markets, said in a commentary. “Stock markets are becoming nervous about the prospect of rising interest rates against a background of moderate profit growth and relatively high valuations, particularly in the U.S.”

SAMSUNG ELECTRONICS: Shares in Samsung, which plunged 8 per cent the day before, lost 0.7 per cent on Wednesday. South Korea’s biggest manufacturer is struggling with recalls and a discontinuation of its premium smartphone, the Galaxy Note 7, which has proven prone to catch fire. The company revised its profit forecast for the third quarter on Wednesday, to 5.2 trillion won ($4.6 billion), down from the 7.8 trillion won profit estimate it announced Friday.

ASIA’S DAY: Japan’s benchmark Nikkei 225 lost 1.1 per cent to finish at 16,840.00, and Australia’s S&P/ASX 200 fell 0.1 per cent to 5,474.60. South Korea’s Kospi inched up 0.1 per cent to 2,033.73. Hong Kong’s Hang Seng slipped 1.0 per cent to 23,324.95. The Shanghai Composite lost 0.2 per cent to 3,058.50.

ENERGY: Benchmark U.S. crude oil rose 18 cents to $50.97 a barrel in electronic trading on the New York Mercantile Exchange. It lost 56 cents to 50.79 on Tuesday. Brent crude, the international standard, added 34 cents to $52.75 a barrel in London.

CURRENCIES: The dollar weakened to 103.46 yen from 103.94 late Tuesday in Asia. The euro fell to $1.1023 from $1.1128.