Global stocks decline on US interest rate concern

People walk past a bank electronic board showing the Hong Kong share index at Hong Kong Stock Exchange Monday, Oct. 8, 2018. Asian stock markets declined Monday, after China injected extra money into its cooling economy. (AP Photo/Vincent Yu)

Global stocks declined Monday on investor concerns about more possible U.S. interest rate hikes.

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KEEPING SCORE: Germany's DAX fell 0.6 percent to 12,040.26 and France's CAC 40 lost 0.6 percent to 5,325.91. London's FTSE 100 retreated 0.3 percent to 7,298.96. On Friday, the DAX lost 1.1 percent, the CAC 40 dropped 1 percent and the FTSE 100 fell 1.3 percent. On Wall Street, the future for the Standard & Poor's 500 index was down 0.2 percent and that for the Dow Jones industrial average was off 0.3 percent.

ASIA'S DAY: The Shanghai Composite Index tumbled 3.7 percent to 2,716.51 and Hong Kong's Hang Seng retreated 1.4 percent to 26,201.08. Japanese markets were closed for a holiday. Sydney's S&P-ASX 200 lost 1.4 percent to 6,100.30 and Seoul's Kospi was off 0.6 percent at 2,253.83. India's Sensex declined 0.3 percent to 34,267.77. Jakarta gained while New Zealand, Taiwan and Singapore retreated.

WALL STREET: Prices fell following Federal Reserve chairman Jerome Powell's comment that interest rates are a "long way" from holding back economic growth. That prompted speculation the Fed will raise rates further. The S&P 500 lost 0.6 percent, the Dow dipped 0.7 percent and the Nasdaq composite skidded 1.2 percent. The yield on the 10-year Treasury note jumped to 3.23 percent, its highest since May 2011, from 3.19 percent.

CHINA RATE CUT: Beijing injected money into its cooling economy by reducing the level of reserves banks are required to hold. Economists say that should free up some 1.2 trillion yuan ($175 billion) for lending. The central bank told banks to lend more to entrepreneurs. Chinese leaders are trying to shore up economic growth that began to cool after Beijing tightened lending controls last year to rein in a debt boom. A tariff fight with U.S. President Donald Trump has added to downward pressure on growth.

ANALYST'S TAKE: "The markets remain incredibly fragile," said Stephen Innes of currency trader OANDA in a report. Pessimism toward equities is driven by "the toxic combination of higher U.S. yields and risk aversion," he said. A boost to sentiment from China's reserve ratio cut "has given way to the reality check" of higher U.S. Treasury yields.

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ENERGY: Benchmark U.S. crude tumbled 79 cents to $73.54 per barrel in electronic trading on the New York Mercantile Exchange. The contract shed 1 cent to $74.34 on Friday. Brent crude, used to price international oils, dropped $1.08 to $83.08. It lost 42 cents the previous session to $84.16.

CURRENCY: The dollar edged down to 113.69 yen from Friday's 113.71 yen. The euro declined to $1.1490 from $1.1523.

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