ASX200 sheds billions at the open amid global growth jitters

ASX200 sheds billions at the open amid global growth jitters

Energy is the poorest performing sector in the last five sessions, down 8.6 percent.

Markets have been rattled in recent weeks by increased worries over the impact that rising interest rates, inflation and the escalating trade dispute between the US and China may have on Corporate America.

Resources fell further, with giants BHP and Rio Tinto shedding 2.99 and 2.97 per cent respectively, and Fortescue Metals losing 4.4 per cent after reporting a fall in first-quarter iron ore shipments. It hadn't had a streak of losses that long since right before the November 2016 presidential election.

The Dow is now on track for its worst month since May 2010. The industrial manufacturer said it expects raw material prices to continue climbing, and for tariffs to have a roughly $100 million negative impact on the company's sourcing costs next year. The most recent bear market began in 2007, when the USA financial crisis crippled everything from the housing market to stock market investors.

Investors may also be betting that the Federal Reserve may elect to take a more measured approach to raising interest rates should the economy show more signs of slowing.

Australia's S&P/ASX 200 Index also fell more than 2%. Five of the six most valuable USA companies recently suffered a correction: Amazon, Microsoft, Alphabet, Berkshire Hathaway and Facebook are all down sharply from their recent highs, although some of those declines began this summer.

The Cboe Volatility Index .VIX , the most widely followed barometer of expected near-term gyrations for the S&P 500, jumped 4.52 points to close at 25.23, its highest close since February 12. European politics is also in focus, with Italian Prime Minister Giuseppe Conte doubling down on his government's budget and U.K. Prime Minister Theresa May's cabinet descending into conflict.

Traders blamed worries over slowing growth in China and costs related to President Donald Trump's trade policies. That was followed by a less severe stumble in March. That, in turn, has created more pressure on local stock markets, Mr Leung said.

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The Hang Seng Index slipped 1.01 per cent, or 255.32 points, to 24,994.46.

MARKETS OVERSEAS: Major indexes in Europe were trading higher.

Soaring corporate profits, fueled by sweeping corporate tax cuts, powered the market's recovery this spring and summer.

Profits of S&P 500 companies are expected to have jumped almost 22 percent in the third quarter, slower than the previous two quarters, according to Refinitiv data. It too erased all of its gains for 2018. "The same thing happened when the market dropped in January".

Twitter rose 18.6 percent after strong ad sales boosted third-quarter profit, while Comcast gained 18.6 percent after the media company's quarterly results beat Wall Street estimates.

Most companies that missed earnings expectations or issued cautionary outlooks were punished.

Technology and health care companies took heavy losses Tuesday.

Ongoing concerns about the U.S. where the Federal Reserve is looking at further interest rates to quell inflation fuelled in part by Trump administration tax cuts are also feeding into global markets.

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