Overseas Market Report
US stocks have dropped as global jitters from Turkey’s plummeting currency spread to Wall Street, with the S&P 500 and the Dow falling for the fourth session in a row.
Financial stocks bore the brunt of Turkey contagion fears, with shares of Citigroup, Bank of America, Wells Fargo & Co and JPMorgan Chase & Co closing down between 0.8 per cent and 2.2 per cent. A pledge by Turkey’s central bank to stabilise the plummeting lira failed to calm investors’ nerves. The currency has dropped 40 per cent against the US dollar so far this year. “The market’s all about Turkey and the continuation of the trade issues out there,” said Gary Bradshaw, portfolio manager of Hodges Funds in Dallas. “The market definitely wants to go higher but we’re having some curves thrown at us along the way that have caused a few day-to-day pull-backs.”
But Apple shares hit an all-time high as the first US listed company to reach $US1 trillion in market value continued a post-earnings rally. The stock finished the day up 0.6 per cent. Amazon also reached a record level, hitting $US1,925 per share. The stock closed 0.5 per cent higher. The Dow Jones Industrial Average fell 125.44 points, or 0.5 per cent, to 25,187.7, the S&P 500 lost 11.35 points, or 0.40 per cent, to 2,821.93 and the Nasdaq Composite dropped 19.40 points, or 0.25 per cent, to 7,819.71.
Morning Note - Tuesday 14th August