NEW YORK: Global stocks slid for a third day on Friday, erasing all of this year’s gains, and commodity prices slipped as investors turned to safer assets after US President Barack Obama moved to curb risk-taking among banks.
Oil fell under $75 a barrel as commodities across the board remained pressured by Obama’s proposals to limit the size and trading activities of banks, which have boosted their presence heavily in commodity markets.
A drop in US and European equities to lows last seen in December caused crude oil to extend losses, while gold hit a one-month low and silver also fell. Other metal prices remained depressed, with both zinc and nickel falling about 5 percent.
The exit from risky trades pulled the US dollar lower against the euro and yen, but the euro rebounded from Thursday’s near six-month low against the greenback.
The yen, which often benefits when investors grow nervous, touched a five-week high against the dollar and hit a nine-month peak against the euro.
The delayed confirmation of Federal Reserve Chairman Ben Bernanke to a second term as head of the US central bank overshadowed solid earnings from General Electric and McDonald’s.
Shortly after midday, the Dow Jones Industrial Average was down 34.46 points, or 0.33 percent, at 10,355.42. The Standard & Poor’s 500 Index was down 4.27 points, or 0.38 percent, at 1,112.21. The Nasdaq Composite Index was down 13.60 points, or 0.60 percent, at 2,252.10.
European shares fell to post their worst weekly decline in nearly three months.
The FTSEurofirst 300 index of leading European shares closed down 1.1 percent at 1,024.95 points.
US crude fell $1.05 to $75.03 a barrel at 2:00 EST (1900 GMT). Crude fell as low as $74.58, its lowest since Dec. 23.
ICE Brent crude fell $1.26 at $73.32 after touching a session low of $72.87.