Shares retreat on world growth fears

NEW YORK: Global shares fell for a third day yesterday as corporate warnings of slower growth
underscored concerns about a sluggish world economy, while oil prices rebounded over worries about the security of Middle East crude supplies.
Weak risk sentiment hurt equity markets after warnings from the International Monetary Fund, the World Bank and US multinationals about the lackluster world economic outlook.
After the close of trading on Tuesday, Alcoa warned of dwindling aluminum consumption, while other large companies, including Dow component Chevron and engine maker Cummins Inc., cautioned about slowing growth.
"You've seen very cautionary earnings results and even forward guidance; Alcoa has good earnings, but their forward guidance is lackluster," said Richard Weeks, managing director at HighTower Advisors in Vienna, Virginia. "It points to a slow China and slow global growth."
The Dow Jones Industrial Average was down 72.94 points, or 0.54 percent, at 13,400.59. The Standard & Poor's 500 Index was down 5.59 points, or 0.39 percent, at 1,435.89.
The Nasdaq Composite Index was down 7.99 points, or 0.26 percent, at 3,057.03.
Ebbing growth in China, the world's No. 2 economy, is expected to rein in corporate earnings in the third quarter and dent profit forecasts as the Asian nation feels the pinch of the debt crisis in the euro zone, a key trading partner.
The World Bank cut its growth forecast for East Asia earlier in the week on concerns China's slowdown could last longer than expected.
On Tuesday, the International Monetary Fund said a deepening euro zone debt crisis threatened the global economy.






In Europe, the FTSEurofirst 300 index of top company shares fell 0.5 percent to close at 1,090.03, while MSCI's all-country world equity index also slipped 0.5 percent.
The euro rebounded slightly after falling to its lowest in more than a week against the dollar, pressured by uncertainty about whether Spain will apply for a bailout, widely considered
the next step forward for Europe.
The euro was up 0.08 percent at $1.2894 after touching 1.2884. The US dollar index was down 0.05
percent at 79.912.
European Union leaders are scheduled to meet at the end of next week. Euro zone finance ministers delivered a united defense of Spain at a meeting this week, saying the country did not need a bailout, at least for now.
"We are in a holding pattern," said John Doyle, currency strategist at Tempus Consulting in Washington. "What we're going to look for the rest of the day and probably next week and a
half is if there's any news coming out of Spain and possible decision on a full bailout or not."
Oil edged up in choppy trading as concerns about the security of Middle East supplies amid escalating tensions over Syria helped offset fears that slowing world growth will curb demand.
Brent crude gained 47 cents to $114.97 a barrel.
US crude rose 41 cents to $92.80.
US Treasuries prices fell as traders reduced bond holdings to make room for $21 billion in 10-year note supply, part of this week's $66 billion in coupon-bearing offerings.
The benchmark 10-year US Treasury note was down 4/32 in price to yield 1.7254 percent.