Global stock markets were broadly lower on Tuesday after a dramatic day of selling on Wall Street on Monday which was spurned by weakness in the technology sector. The previously strong FAANG stocks (Facebook, Apple, Amazon, Netflix and Google) are now down over 20 percent from their one-year highs, bringing them into bear market territory. Facebook shares headed lower after reports that CEO Mark Zuckerberg will be taking a more aggressive management style. Apple shares slumped after reports that the company reduced production for iPhones this year and that it has cut orders for its newest models. Tech shares were also under pressure because of reports of alleged misconduct in other tech brands including Micron Technology, Samsung and SK Hynix. The Nasdaq was the hardest hit, closing 3.03 percent lower, while the S&P 500 and the Dow Jones Industrial Average closed 1.66 and 1.56 percent lower respectively.
In Asia, markets also faced steep losses, with the Shenzhen Composite suffering the worst losses. The index was down 1.90 percent as of 1:10 p.m. HK/SIN. The Shanghai Composite was down 1.63 percent, the Hang Seng Index was down 1.83 percent and South Korea’s Kospi was down 1.14 percent. Japan faced its own troubles after the chairman of Nissan, one of the country’s largest car manufacturers, was arrested for financial misconduct. Former Chairman Carlos Ghosn was immediately removed from his position, but the damage spread to other companies as he was responsible for the alliances between Nissan and other automobile makers including Mitsubishi and Renault.
Currency Movements
On the currency markets, Bitcoin continued its downward spiral on Tuesday, plummeting to $4,630.57, a 15.27 percent decline since yesterday. The cryptocurrency is now more than 28 percent lower than its price last month. The fall of the cryptocurrency has spread to other cryptocurrencies and has also reflected investor jitters as the market takes a new turn.
The U.S. dollar was trading mixed again on Tuesday, easing slightly against the yen to trade at 112.53. The greenback rose slightly against the euro to trade at $1.1448. It was unchanged against the Canadian dollar.