Global stocks fall on disappointing results; yen jumps

Thu Jul 21, 2016 4:40pm EDT
 
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By Richard Leong

NEW YORK (Reuters) - Stock prices around the world fell on Thursday on disappointing earnings, while the yen jumped after Bank of Japan chief Haruhiko Kuroda said he saw no need to use "helicopter money" to boost the world's No. 3 economy.

The retreat in equity markets rekindled some safe-haven bids for U.S. Treasuries and other government debt, whose yields had risen from record lows linked to Britain's stunning vote to leave the European Union a month ago.

"The market is just tired," said Stephen Massocca, chief investment officer of Wedbush Equity Management in San Francisco. "It’s had a massive move in a straight line and so it is only natural to see some pullback here."

Oil prices declined after a rise in U.S. gasoline inventories pushed petroleum stockpiles to a record high, feeding uneasiness about a persisting global supply glut.

Dow and S&P stock indexes retreated from record highs as Intel (INTC.O: Quote) reported slowing revenue growth at its key data center, while European shares fell on weakness in airlines, led by a profit warning from Lufthansa (LHAG.DE: Quote).

The Dow Jones industrial average .DJI unofficially closed down 77.8 points, or 0.42 percent, at 18,517.23, the S&P 500 .SPX ended 7.85 points, or 0.36 percent, lower at 2,165.17 and the Nasdaq Composite .IXIC finished down 16.03 points, or 0.31 percent, to 5,073.90.

Europe's broad FTSEurofirst 300 index .FTEU3 edged down 0.07 percent at 1,344.13.

The MSCI world equity index .MIWD00000PUS, which tracks shares in 45 nations, fell 0.39 points or 0.09 percent, to 412.43.   Continued...

 
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 21, 2016.  REUTERS/Brendan McDermid