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GLOBAL MARKETS-Wall St joins global stocks slide; euro, bonds rise

Published 2015-09-24, 11:03 a/m
© Reuters.  GLOBAL MARKETS-Wall St joins global stocks slide; euro, bonds rise
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(Adds U.S. stocks selloff, Treasuries data, changes byline and
dateline; previous LONDON)
* Wall St indexes off more than 1 percent
* CI world index falls for fifth day
* Norwegian Crown drops 2 percent after surprise rate cut

By Michael Connor
NEW YORK, Sept 24 (Reuters) - Stocks around the world fell
for a fifth day on Thursday, sliding towards two-year lows, as
worries lingered over global growth and as the scandal over
Volkswagen's emissions test-cheating rattled Europe's carmakers.
Government bonds prices rose on safety bids, while the
dollar fell against the euro but jumped to a 13-year high
against the Norwegian crown after a surprising cut in the oil
producer's interest rates.
Wall Street equity indexes fell more than 1 percent in early
trading, clouded by concerns about global growth and ahead of a
speech later Thursday by Federal Reserve Chair Janet Yellen that
comes a week after the U.S. central bank rattled markets by
keeping in place near-zero interest rates.
The Dow Jones industrial average .DJI fell 189.32 points,
or 1.16 percent, to 16,090.57, the S&P 500 .SPX was down 19.09
points, or 0.98 percent, to 1,919.67 and the Nasdaq Composite
.IXIC lost 51.50 points, or 1.08 percent, to 4,701.24.
Shares of Caterpillar (NYSE:CAT) fell as much as 8 percent to a
five-year low of $64.65, knocking 31 points off the Dow Jones
Industrial Average. The company CAT.N slashed its revenue
forecast for 2015 by $1 billion and said it could cut up to
10,000 jobs through 2018, amid a downturn in the mining and
energy industries.
A 2.2 percent tumble for Tokyo's Nikkei .N225 as Japan
returned from an extended break set a gloomy tone in Asia and
Europe's bourses .FTEU3 .

EMISSIONS TEST SCANDAL
Shares of Volkswagen (XETRA:VOWG) VOWG_p.DE , which had been battered on
news it cheated on diesel-emissions tests, clawed back 3 percent
after some reassuring German ID:nL5N11U15D and French
sentiment data ID:nL5N11U0SH.
However, the scandal threatened to widen to VW's rivals, and
share prices fell 4-5 percent for BMW BMWG.DE , Renault
RENA.PA , Fiat FCHA.MI and Daimler DAIGn.DE.
Those declines dragged London's FTSE .FTSE , Frankfurt's
DAX .GDAXI and Paris's CAC 40 .FCHI down 0.9, 2.0 and 1.9
percent respectively, to leave MSCI's 45-country All World index
.MIWD00000PUS off 1 percent and with a fifth day of losses.
Prices for U.S. Treasuries and German Bunds were driven up
by investor concerns over possibly slowing global economic
growth and the stocks sell-off
Benchmark 10-year Treasuries notes US10YT=RR rose 11/32 in
price for a yield of 2.107 percent, down nearly 4 basis points
from late on Wednesday. The 10-year yield touched its lowest
level in four weeks at 2.102 percent.
Trading was choppy in the currency and emerging markets.
Norway's crown NOK= slumped 2 percent after its central
bank unexpectedly cut interest rates.
The euro EUR= added to gains it had made on Wednesday,
when European Central Bank chief Mario Draghi appeared to
suggest a fresh round of money printing wasn't as close as many
analysts had thought.
The euro was last up 0.75 percent at $1.1266.


Oil fell towards $47 a barrel as U.S. data, showing durable
goods in August dropped 2 percent, reignited fears about the
demand outlook in the world's largest oil consumer. Brent crude
LCOc1 dropped 15 cents to $47.60 a barrel, after ending the
previous session down $1.33.
Platinum XPT= which has been hammered by the VW scandal
because it used in catalytic converters to clean exhaust
emissions, also rebounded having hit its lowest level in more
than 6-1/2 years. It last stood at $947.00 per ounce.
Emerging market currencies remained under heavy fire too.
The Brazilian real BRL= sank to a new all-time low of
4.2482 per dollar, clobbered by a recession, fiscal deficit and
political instability following corruption allegations against
leading politicians in the world's seventh-largest economy.

(Editing by Bernadette Baum)

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