Equity markets resume drops as volatility persists

LONDON: European and Asian stock markets mostly fell Thursday, with analysts warning that this week’s volatility has some time to run.

Data last Friday showing fewer US jobs created in July than expected, plus the spike in the value of the yen after a rate hike last week, sent global equity markets plunging Monday.

Since then there have been rebounds and renewed losses as traders seek to weigh up the risks of recession in the United States, the world’s biggest economy.

London and Paris were down more than one percent in early afternoon deals Thursday after Tokyo closed down 0.7 percent.

The Japanese index had tumbled more than 12 percent Monday before rocketing over 10 percent Tuesday, largely because of wild swings in the yen against the dollar.

Stocks extend recovery, yen slides as volatility grips markets

Wall Street closed down Wednesday as US equities experience their own roller-coast week.

“Global markets remain jittery,” noted AJ Bell investment director Russ Mould.

“There will be concern that a positive start to trading on Wall Street on Wednesday faded fast, with all eyes now turning to today’s session and whether last night was just driven by a few big earnings disappointments or represents the start of a new downtrend,” he added.

Warner Bros. Discovery’s share price plunged more than 10 percent in after-hours trading Wednesday after it reported a quarterly loss of almost $10 billion.

Almost all of the loss was down to a $9.1 billion write-down in the value of the US media giant’s cable network, it announced in a statement, underscoring the challenges facing the legacy television industry.

Weak earnings from Disney, Airbnb and TripAdvisor added to the sense of concern that American consumers were tightening their belts as the impact of elevated inflation and two-decade-high borrowing costs bite.