Global stocks tumble to 3-month low

new york — World equities fell more than 1 per cent on Wednesday, sliding to three-month lows, as technology shares slumped on fears of slowing demand, while rising US bond yields made stocks less compelling.

On Wall Street, the Philadelphia Semiconductor index tumbled 3.07 per cent after Swiss vacuum valve maker VAT Group said demand was softening from chip equipment makers.

The Dow Jones Industrial Average fell 400.44 points, or 1.52 per cent, to 26,030.13. The S&P 500 lost 43.98 points, or 1.53 per cent, to 2,836.36 and the Nasdaq Composite dropped 169.06 points, or 2.18 per cent, to 7,568.96.

Among the tech sector’s worst performers in Europe were Austrian chipmaker AMS fell 6.6 per cent and STMicroelectronics was down 5.6 per cent.

Benchmark US 10-year Treasury notes fell 3/32 in price to push their yield up to 3.2196 per cent. But the yield on shorterterm two- and three-year notes was just under or hovered at 3 per cent, respectively, providing longabsent competition for equities.

MSCI’s gauge of stocks across the globe shed 1.15 per cent and the pan-European FTSEurofirst 300 index of leading regional shares lost 1.43 per cent.

The euro and sterling rose, underpinned by optimism for a Brexit deal, while the dollar lost ground against a basket of currencies even as US yields posted fresh multiyear peaks. The dollar index fell 0.24 per cent, with the euro up 0.35 per cent at $1.1529. The Japanese yen strengthened 0.24 per cent versus the greenback at 112.67. —