Global shares falter as Wall St tumbles; bond prices fall

Wed Oct 22, 2014 6:14pm EDT
 
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By Herbert Lash

NEW YORK (Reuters) - Global equity markets fell on Wednesday, reversing earlier gains driven by solid corporate earnings and mild U.S. inflation data that may let the Federal Reserve keep interest rates lower for longer, as U.S. stocks retreated after some big corporate names sold off.

Wall Street fell as Boeing Co (BA.N: Quote) and Biogen Idec (BIIB.O: Quote) tumbled after their results disappointed investors, the two biggest drags on the S&P 500.

A shooting at the Canadian parliament in Ottawa also unnerved investors.

Boeing lost 4.5 percent as analysts raised concern about the costs of its 787 Dreamliner jet. Biogen slid 5.4 percent after reporting that sales of its big-selling new multiple sclerosis drug, Tecfidera, fell short of Wall Street's lofty expectations.

"The season has been mixed, and the global economy is a concern for big multinational companies, but the fact that the market can shake off some bad reports is indicative of what good footing it is on right now," said Bruce Bittles, chief investment strategist at Robert W. Baird & Co in Nashville.

The retreat on Wall Street pulled MSCI's gauge of global equity performance lower. Earlier in the day, European stocks closed higher, largely driven by earnings.

GlaxoSmithKline (GSK.L: Quote) rose 2.6 percent in London after saying it expects an Ebola vaccine to be ready this year.

Wall Street initially rose, lifted by U.S. tech names after both Yahoo Inc YHOO.O and Broadcom BRCM.O beat revenue expectations late Tuesday.   Continued...

 
Workers speak above an electronic information board at the London Stock Exchange in the City of London January 2, 2013. REUTERS/Paul Hackett