Choppy trading marks end of worst week for stocks in two years

The Australian share market has followed Wall Street into negative territory

The Australian share market has followed Wall Street into negative territory

All week, the market gyrated between large gains and even larger losses.

"The index swung more than 850 points in volatile trading Friday".

Asian markets fell more sharply. Those included technology companies, banks, and retailers and travel companies and homebuilders.

A hint of rising inflation and interest rates last week was all it took to set off a cascade of investor angst.

Scott Wren, senior global equity strategist for Wells Fargo Investment Institute, said investors are anxious that the higher wages could eat into corporate profits and that the Fed could "make a mistake" and raise rates too quickly.

"At its lows Friday, the Dow had fallen more than 500 points or 2.1 percent". It hasn't been that low since mid-November. The Nasdaq composite gained 15 points, or.2 percent, trading at 6,789.

Tom Martin, senior portfolio manager with Globalt Investments, said he didn't see anything specific moving the market lower today, just a continuation of a shift in investor mindset from fear of missing out in a rising market to worry of clocking big losses in a market that's turned.

"I don't want to label what we're seeing as a bubble".

The losses were broad.

Traders work on the floor of the New York Stock Exchange on February 9, 2018 in New York City.

After a muted open, major indices were in the red most of the day, suffering a major bout of weakness in late morning and another round of selling late in the afternoon.

"This is a technical-driven sell-off, rather than one reflecting a significant deterioration in fundamentals, " Mohamed A. El-Erian, the chief economic adviser at German-based financial giant Allianz, said in an email.

Wall Street capped a week of violent swings with a big gain. The stock dropped $28.24 to $59.80.

It marked its lowest close since April 2017 - a decline mirrored by both the German Dax and French Cac 40, which each dropped 2.3%. Its fourth-quarter revenue was also better than expected.

The Dow dropped 1,032 points, or 4.1 percent, to 23,860. Energy shares lagged as oil prices tumbled.

Stocks in Europe declined and bond yields increased after the Bank of England said it could raise interest rates in coming months because of the strong global economy. That also sent the pound higher.

"There are going to be people that are going to be selling into any kind of strength and then you are going to have some value-conscious investors taking advantage of these multiple 100-point drops", said Alan Lancz, president of Alan B. Lancz & Associates, an investment advisory firm in Toledo. The Pan-European STOXX 600 was off.70 percent and Britain's FTSE was down 34 points, or.49 percent.

Bond prices wobbled and turned higher. According to CNBC, the Dow has moved 20,000 points up and down over the course of the week, covering a trading range of 2,000 points. So if the economy did well, investors would buy stocks and sell bonds, and if there was risk on the horizon, they would sell stocks and buy bonds. Brent crude, used to price global oils, slid $2.02, or 3.1 per cent, to close at $62.79 in London. Heating oil shed 7 cents to $1.86 a gallon. The Iseq lost 4.1 per cent over the week.

In small-caps, the Russell 2000 Index closed at 1,480.42 for a gain of 16.62 points or 1.14%.

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