Around the world, stocks have tumbled on the back of concerns surrounding global economic growth and rising interest rates.
The International Monetary Fund warned earlier this week that simmering trade tensions, such as those between the U.S. and China, could lead to a "sudden deterioration in risk sentiment, triggering a broad-based correction in global capital markets and a sharp tightening of global financial conditions."
At around 5:50 a.m. ET, Dow futures sank 228 points, indicating a sharply lower open of 319.74 points. Futures on the S&P 500 dropped indicating a negative open of 29.78 points, while Nasdaq futures signaled a negative open of 75.50 points. This after stocks sank Wednesday with the Dow plunging more than 800 points in its worst drop since February.
Meanwhile, U.S. Treasury yields have this week climbed to multi-year highs. Traditionally a sharp rise in bond yields — the cost of borrowing — is seen as negative for major cooperates and their stock prices.
Asia markets fell sharply on Thursday, with the stock indexes in Shanghai, Shenzhen and Tokyo all tumbling by around 4 or 5 percent. The Shanghai composite saw its worst session since February 2016, according to data from analytics company Wind. In the Greater China region, the Hang Seng index slumped 3 percent.
In Taiwan, the tech-heavy Taiex dropped by 6.31 percent to close at 9,806.11, with shares of lens maker and Apple supplier Largan Precision plunging 9.89 percent. Over in South Korea, the Kospi continued the general trend for the day by tumbling 4.14 percent to close at 2,136.31.UK: Britain's blue-chip FTSE 100, for example, has lost 1.77% to trade at 7,019 points, while Italy's FTSE MIB index is headed for a bear market, (a 20% decline within a two-month period) down 1.9% at 23,894.
In Europe, stocks were also sharply lower Thursday morning, with the Euro Stoxx 600 Index hitting its lowest level in more than 20 months. Technology stocks led the losses, down 3.2 percent, after a sharp sell-off for the same sector on Wall Street Wednesday.
Fixed income saw some buying in a traditional "safe-haven" play for investors. The yield on the German government bond dropped six basis points on Thursday morning, with yields having an inverse relationship to prices.
Source: CNBC
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