November 20, 2018 / 8:36 PM / 19 days ago

GLOBAL MARKETS-Stocks, oil plunge as global growth prospects dim

    * Shares of U.S. retailers tumble on weak earnings, outlooks
    * Oil plunges on global economic worries
    * Dollar rises as investors move to safe havens
    * GRAPHIC-World FX rates in 2018: tmsnrt.rs/2egbfVh

 (Updates to mid-afternoon in U.S. markets)
    By April Joyner
    NEW YORK, Nov 20 (Reuters) - World equity markets and oil
prices tumbled on Tuesday as worries over economic growth
prospects prompted investors to retreat to safe-haven currencies
and U.S. Treasuries.
    U.S. stocks continued their slide as shares of consumer
discretionary companies plunged after several retailers,
including Target Corp         and Kohl's Corp        , gave
underwhelming quarterly results and earnings forecasts.
    Shares of Apple Inc         , which have tumbled nearly 20
percent from their record high, also extended their decline
after Goldman Sachs trimmed its price target for the stock for
the second time in just over a week.
    "Despite what has been a pretty good earnings season, people
are looking ahead to next year and are worried about a
slowdown," said Mark Kepner, equity trader at Themis Trading in
Chatham, New Jersey.
    "Until recently, we've been the standout," Kepner said,
referring to U.S. equity markets. "So the question becomes,
'When do those come together? Does the rest of the world catch
up with us, or do we look like the rest of the world?'"
    Oil prices slid as much as 7 percent to mirror the stock
sell-off as fears about slowing global demand and a surge in
U.S. production outweighed expected supply cuts by the
Organization of the Petroleum Exporting Countries (OPEC).
            
    Oil extended its losses after U.S. President Donald Trump
said the United States intends to remain a "steadfast partner"
of Saudi Arabia even though "it could very well be" that Saudi
Crown Prince Mohammed bin Salman had knowledge of the killing of
journalist Jamal Khashoggi. Heightened tensions between the two
countries had raised concerns about the possibility of supply
disruptions.             
    U.S. crude futures        settled down $3.77 at $53.43 a
barrel, a 6.59 percent drop. Brent crude futures         settled
$4.26 lower at $62.53 a barrel, a 6.38 percent decline.
    With Tuesday's losses, U.S. crude prices have fallen more
than 30 percent from a near four-year peak in early October.
Brent crude prices have dropped some 28 percent in the same
period.
    Meanwhile, the dollar index       , tracking the U.S. unit
against a basket of six major currencies, rose 0.7 percent as
the greenback recovered after having been weighed by weak U.S.
housing data. Other safe-haven currencies such as the yen and
Swiss franc also gained.             
    Keeping with the flight to safe-haven assets, the benchmark
10-year U.S. Treasury yield also touched a seven-week low,
though it later rose above that level.             
    The euro       , by contrast, was down 0.76 percent to
$1.1364, mirroring a sell-off in European stocks.
    The pan-European STOXX 600          ended 1.1 percent lower
as shares of technology companies lagged. Shares of automakers
extended their decline following the arrest of Renault SA
          and Nissan Motor Co Ltd          chairman Carlos Ghosn
for alleged financial misconduct.
    MSCI's gauge of stocks across the globe                 shed
1.82 percent.
    On Wall Street, the Dow Jones Industrial Average        fell
586.61 points, or 2.34 percent, to 24,430.83, the S&P 500       
lost 52.17 points, or 1.94 percent, to 2,638.56 and the Nasdaq
Composite         dropped 136.53 points, or 1.94 percent, to
6,891.95.
    Benchmark 10-year notes             last rose 3/32 in price
to yield 3.0482 percent, from 3.059 percent late on Monday.

 (Reporting by April Joyner; Additional reporting by Abhinav
Ramnarayan and Shinichi Saoshiro; Editing by Bernadette Baum and
Chizu Nomiyama)
  
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