* Techs lead U.S. equities lower in renewed sell-off
* Thursday's sharp sell-off on Wall Street takes global toll
* Dollar gains slightly, bonds rise on safety bid
(Adds oil settlement prices)
By Herbert Lash
NEW YORK, April 11 Global equity markets fell on
Friday as fears on Wall Street about over-stretched stock
valuations spread to Asia and Europe, pushing investors to the
safety of bonds.
The Nasdaq composite, which has been pounded in recent days
as investors bailed out of high-flying technology and biotech
shares, reversed early gains to fall more than 1 percent. The
index, which on Thursday recorded, its biggest single-day
percentage loss since November 2011, fell below the 4,000 mark
for the first time in more than a month.
The benchmark S&P 500 index was also lower after failing to
hold a brief rebound, and was on target for its worst week since
January. The Nasdaq biotech index, down more than 20
percent from late February, slid 2.5 percent after an earlier
Benchmark 10-year Treasuries notes tracked the
ups and downs on Wall Street, paring gains early in the session,
then rising in choppy trade. With equities lower, the 10-year
bond rose 3/32 in price to yield 2.6175 percent.
"This equity market meltdown has brought a 'fear' bid into
bonds," said Larry Milstein, head of government and agency
trading at R.W. Pressprich & Co in New York.
A benchmark of global equities fell to a two-week low,
spurred by a broad risk-averse tenor among investors that led to
selloffs in higher-yielding currencies and emerging market
"There's been contagion from the correction in the U.S.
which is probably not over. But the fact is, this is mostly a
U.S. correction," said David Thebault, head of quantitative
sales trading at Global Equities in Paris.
"People are getting out of overvalued sectors and looking
for bargains elsewhere. The market's positive longer-term trend
is still intact, this pullback will just remove the froth," he
The slide in global equities persisted in the wake of
disappointing quarterly results from JPMorgan Chase & Co
, the biggest U.S. bank. This exerted more pressure on
the benchmark Standard & Poor's 500 index, which on
Thursday had suffered its biggest one-day drop in two months.
Shares of JPMorgan sank 3.1 percent to $55.60, while the S&P
financial index lost 0.9 percent and was the worst
performing S&P sector.
MSCI's all-country world equity index fell
to lows last seen in late March and was last trading down 1.0
European technology stocks led sectoral falls with a
2.5 percent decline, echoing U.S. declines. The tech sector in
Europe had rallied more than 40 percent since November 2012
through the start of April.
ARM, whose chip designs are featured in smartphones
such as Apple's iPhones, fell 4.5 percent.
The pan-European FTSEurofirst 300 of leading
regional shares closed down 1.4 percent at 1,312.92.
The Dow Jones industrial average fell 125.52 points,
or 0.78 percent, to 16,044.7. The S&P 500 lost 14.54
points, or 0.79 percent, to 1,818.54 and the Nasdaq Composite
dropped 50.336 points, or 1.24 percent, to 4,003.771.
The dollar index, which measures the greenback against six
major currencies, rose 0.1 percent, and the dollar edged higher
against the yen, up 0.09 percent. The euro rose slightly against
"Bad news for the world is good news for the dollar," said
Steven Englander, managing director and global head of G10 FX
strategy at CitiFX in New York. "Once fears about the equity
market intensified, they picked up a more conventional type of
mode to buy the dollar."
U.S. crude oil rose by $1 as a positive consumer confidence
report and high gasoline demand indicated a stronger economy,
while Brent was lifted for most of the session by traders'
concerns over tensions between Russia and the West.
The International Energy Agency had set a bearish tone for
the market earlier in the session after it lowered its global
demand forecast for 2014 due to expectations that more Libyan
crude will reach the market next week, pushing Brent lower.
Brent oil futures gained slightly. Brent crude
settled down 13 cents at $107.33 a barrel. U.S. oil rose
34 cents to settle at $103.74 a barrel.
(Reporting by Herbert Lash; Additional reporting by Atul
Prakash in London; Editing by Leslie Adler and Nick Zieminski)