Global stock prices fell on Friday dragged down by the lackluster technology gains in the US, signaling a return to the negative sentiment that dominated the markets most of the time The Dow Jones Industrial Average slipped 1% and the S & P 500 lost 1.2%. The technology-heavy Nasdaq Composite, which was the most volatile this week, slid 2.6% lower.
Amazon's shares had previously fallen 9.3% in US-dollar terms, while Alphabet lost 5.6% and Netflix 4.1%.
"Last night's revenue was disappointing," said Carsten Brzeski, chief economist at ING in Germany. "Amazon is not a good sign, especially for the economy as a whole, and casts doubt on the strength of US consumption."
In Europe, the Stoxx Europe 600 fell 1
Asia's key markets were disappointed after some US reports on technology profits, including Amazon, and Google Mother Alphabet, said Mohammed Kazmi, Portfolio Manager at Union Bancaire Privée in Geneva.
The positive profit margin that helped boost the index until recently appears to be over, Kazmi said. Investors are now wondering if the global economy has peaked in terms of growth and if the divergence between US and European stocks will continue.
US. Markets will look back at Friday's third quarter GDP release.
"Macro data from the US [including consumer confidence] could bring relief," Brzeski said. "Strong data could cushion the correction. Weak data would obviously improve the correction. "
All subindices of Stoxx Europe 600, with the exception of the Tobacco sub-index, were in the red, with the automotive and spare parts sectors being one of the largest losers with 1.9%. French car supplier
had recently fallen 21% after cutting off his forecasts for an increasingly weak global car market. Automobile companies
Continental and Porsche each accounted for more than 2%.
Trading tensions also weighed on sentiment. The US and China have imposed billions on tariffs for each other's products, pushing down the prospects for the many economies and their supply chains. The Chinese Yuan crept down almost a decade against the greenback and was dragged down by the unsolved trade series.
In Europe, the Italian budget remained a concern to investors, and rating agency S & P released its update on the country's credit outlook on Friday.
The European Union rejected Italy's budget proposal, led by its populist government – the first time the EU has taken such a step. Italy must pass a budget law by the end of the year.
The 10-year US Treasury yield fell to 3.085% from a previous comparison of 3.119%. Yields are inversely related to prices.
In currencies, the WSJ dollar index, which measures the dollar against a basket of 16 peers, rose 0.1%.
In raw materials, Brent crude dropped 0.9% to $ 76.22 a barrel. Gold rose 0.4% to $ 1237.60 an ounce.
Mark Lennihan / Associated Press
– Ben Iron, Riva Gold and Saumya Vaishampayan contributed to this article.