Thursday, July 24, 2014





Global rout in stocks continues


January 27. 2014 11:32PM
By Bernard Condon and Paul Wiseman AP Business Writers

Story Tools
PrintPrint | E-MailEMail | SaveSave | Hear Generate QR Code QR
Send to Kindle


NEW YORK — Shaky economies and plunging currencies in the developing world are fueling a global sell-off in stocks.


Fearful investors on Monday pushed prices lower across Asia and Europe, though many of the drops weren’t as steep as last week. In the U.S. and in other rich countries, where economies are healthier, investors also retreated, but the selling was not as fierce.


The selling started in Asia, with major indexes in both Hong Kong and Tokyo down more than 2 percent, then spread to Europe and the U.S., as stocks slipped across the board, though much less than feared given the big declines on Friday.


Jack Ablin, chief investment officer at BMO Private Bank, said he was encouraged that the U.S. losses were modest.


“We have an accelerating economy, low inflation and accommodative monetary policy,” he said. “The world isn’t falling apart.”


The market turbulence was set off last week by a report from China on a downturn in its manufacturing, more evidence that the world’s second-largest economy is slowing. That’s a big problem for Brazil, South Africa and other developing countries that have come to depend on exports to that country.


Adding to the troubles: The decision by the U.S. Federal Reserve last month to scale back its stimulus for the U.S. economy, which has helped keep interest rates low. Money that had flooded emerging markets looking for higher returns outside the U.S. has begun to come back now that rates may rise, battering those markets.


Despite the widespread stock selling Monday, experts say the troubles in China and elsewhere in the developing world are unlikely to derail a global economic recovery that appears to be gaining momentum. Growth in the world’s wealthy economies is expected to pick up the slack.


“This year, growth will be driven by the dull and old economies — the U.S., the U.K., Germany and even Japan,” said Nariman Behravesh, chief economist at IHS Global Insight.




Comments
comments powered by Disqus Commenting Guidelines
Poll
Mortgage Minute


Search for New & Used Cars

Make 
Model
 
Used New All
 

Search Times Leader Classifieds to find just the home you want!

Search Times Leader Classifieds to find just what you need!

Search Pet Classifieds
Dogs Cats Other Animals



Social Media/RSS
Times Leader on Twitter
Times Leader on Youtube
Times Leader on Google+
The Times Leader on Tumblr
The Times Leader on Pinterest
Times Leader RSS Feeds