November 20, 2018 / 9:38 PM / 25 days ago

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

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

 (New throughout, updates prices and market activity to U.S.
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    By April Joyner
    NEW YORK, Nov 20 (Reuters) - World equity markets and oil
prices tumbled on Tuesday as investors grew more worried about
economic growth prospects, while the U.S. dollar rose on flight
to safe-haven currencies.
    U.S. stocks slid further. 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         , dragged by softening demand
for the iPhone, fell further after Goldman Sachs trimmed its
price target for the stock for the second time in just over a
week.
    "It's the market adjusting to an early 2019 that looks
different from the months of 2018 in that there have been
mounting concerns over global growth," said Quincy Krosby, chief
market strategist at Prudential Financial.
    Oil prices dropped more than 6 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 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 knew about the killing of
journalist Jamal Khashoggi. Heightened tensions between the two
countries had raised concerns about possible supply disruptions.
            
    U.S. crude futures        slumped $3.77, or 6.59 percent, to
settle at $53.43 a barrel. Brent crude futures         settled
$4.26 lower at $62.53 a barrel, down 6.38 percent.
    U.S. crude has now fallen more than 30 percent from a near
four-year peak in early October.
    "When the stock market comes off 8 or 9 percent, it tends to
conjure up images of a weak global economy and that feeds into
expectations of weaker-than-expected oil demand," said Jim
Ritterbusch, president of Ritterbusch and Associates.
    The dollar index       , tracking the greenback against a
basket of six major currencies, rose 0.7 percent. 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 0.72 percent to
$1.1368, 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
1.62 percent.
    On Wall Street, the Dow Jones Industrial Average        fell
551.8 points, or 2.21 percent, to 24,465.64, the S&P 500       
lost 48.84 points, or 1.82 percent, to 2,641.89 and the Nasdaq
Composite         dropped 119.65 points, or 1.7 percent, to
6,908.82.
    Benchmark 10-year notes             last fell 1/32 in price
to yield 3.0628 percent, from 3.059 percent late on Monday.

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