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Dow futures TUMBLE by 200 points after Wall Street CARNAGE leads to global market CHAOS | City & Business | Finance
Published On: Thu, Oct 11th, 2018

Dow futures TUMBLE by 200 points after Wall Street CARNAGE leads to global market CHAOS | City & Business | Finance


At around 12pm this afternoon, Dow Jones Industrial Average futures plunged by around 200 points, with CNBC indicating a loss of around 300 at the open.

The premarket also saw pointed to sharp declines for S&P 500 and Nasdaq 100 futures.

The US stock market tumbled last night, with the Dow Jones Industrial Average sinking by more than 800 points at the close.

It comes as investors grow increasingly concerned about global economic growth and rising interest rates.

The Federal Reserve is raising interest rates which makes it more expensive for companies to borrow and harms share prices.

Investors are nervous a trade war would slash profits.

President Trump took aim at the Fed, accusing them of “making a mistake” after walking off Air Force One in Erie, Pennsylvania for a rally.

He said: ”I think the Fed is making a mistake.

“They are so tight. I think the Fed has gone crazy.

“Actually, it’s a correction that we’ve been waiting for for a long time, but I really disagree with what the Fed is doing.”

The situation was worsened after the International Monetary Fund downgraded its predictions for global growth this week

It is now forecasting 3.7 percent global growth in both 2018 and 2019, down from its July forecast of 3.9 percent growth for both years.

Maurice Obstfeld, the IMF’s chief economist, pointed part of the blame to growing tensions between the US and China, who are currently locked in an increasingly bitter trade war.

Mr Obstfeld said at a media briefing about the fund’s latest World Economic Outlook: “When you have the world’s two largest economies at odds, that’s a situation where everyone suffers.”

He continued: ”Trade policy reflects politics and politics remain unsettled in several countries, posing further risks.”

Rising US Treasury yields have also been a worry for traders and investors.

The benchmark 10-year note yield recently soared its highest level in seven years while the two-year yield reached its highest mark since 2008 earlier this week.



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Dow futures TUMBLE by 200 points after Wall Street CARNAGE leads to global market CHAOS | City & Business | Finance