Goshen News, Goshen, IN

Business

January 25, 2014

Fear of slowing growth pushes down global markets

Fear is back in the market.

Investors are worried about slower economic growth in China, a gloomier outlook for U.S. corporate profits and an end to easy money policies in the United States and Europe. They’re also fretting over country-specific troubles around the world — from economic mismanagement in Argentina to political instability in Turkey.

Those fears converged to start a two-day rout in global markets this week, capped by a 318-point drop in the Dow Jones industrial average Friday. It was the blue-chip index’s worst day since last June. The Dow plunged almost 500 points over the two-day stretch.

The Standard & Poor’s 500 index fell 38 points, or 2.1 percent, to 1,790 Friday. The Nasdaq composite fell 90 points, or 2.2 percent, to 4,128.

Despite the sell-off, U.S. stocks remain near all-time highs after surging 30 percent last year. The S&P 500 is 3 percent below its record high of 1,848 on Jan. 15

U.S. stocks have not endured a correction — a drop of 10 percent or more over time — since October 2011.

In Asia Friday, Japan’s Nikkei 225 slipped 1.9 percent to close at 15,391.56; Hong Kong’s Hang Seng shed 1.2 percent to 22,450.06; and Seoul’s Kospi dropped 0.4 percent to 1,940.56.

The turbulence coincides with a global economic shift: China and other emerging market economies appear to be running into trouble just as the developed economies of the United States and Europe finally show signs of renewed strength nearly five years after the end of the Great Recession.

The trouble began Thursday after a January survey showed a drop in Chinese manufacturing activity. Days earlier, China reported that its economic growth last year matched 2012 for the slowest pace since 1999.

“It is interesting how even a mild tremor in China’s growth causes such anxiety around the world,” said Eswar Prasad, professor of trade policy at Cornell University.

Text Only
Business
  • Digital Life Review Amazon Phone-9 [Duplicate] Amazon Fire breaks ground for phones NEW YORK — What I find fascinating about Amazon’s Fire phone isn’t the gizmos such as the 3-D imagery or the camera scanner that helps you get more information about products.Rather, I like that Amazon is thinking a lot about how phones ought to work

    July 28, 2014 5 Photos

  • News and South Bend Tribune reach delivery agreement GOSHEN — The Goshen News announced today it has reached an agreement with the South Bend Tribune to have its newspaper carriers deliver the Goshen News in Elkhart, LaGrange and Kosciusko counties. According to Publisher Ron Smith, the agreement will

    July 28, 2014

  • BIZ GN140727 urban gypsy image Crafters open Urban Gypsy & Co in Goshen GOSHEN — A shop filled with colorful and fragrant items along East Lincoln Avenue has become part of the growing arts and artisan culture in the city.Urban Gypsy & Co. is at 111 E. Lincoln Ave.Missy Wrathell, Elkhart, and McKenzie Beiler and Kristin

    July 27, 2014 1 Photo

  • PicPlayPost: App to create dynamic collages If you have a smartphone, you’ve likely seen and used various photo collage apps that allow you to add multiple photos that are then combined into one image collage. There are many to choose from and they all work about the same.PicPlayPost is differ

    July 27, 2014

  • Fast Food Workers Convention-3 [Duplicate] Fast food workers push wage hike CHICAGO — Fast food workers say they’re prepared to escalate their campaign for higher wages and union representation, starting with a national convention in suburban Chicago where more than 1,000 workers are expected to discuss the future of the ef

    July 25, 2014 1 Photo

  • Supreme Industries reports improved quarter GOSHEN — Supreme Industries Inc. reported Thursday its second quarter sales and income were up. The company, which makes specialized commercial vehicles, reported its consolidated net sales from continuing operations grew to $71.6 million in the seco

    July 24, 2014

  • Earns General Motors [Duplicate] Recalls cost GM $1.5 billion DETROIT — Recall costs chopped $1.5 billion from General Motors' bottom line in the second quarter, cutting its net income by 85 percent. The automaker, which is in the midst of the worst recall crisis in its history, posted a net profit of $190 mil

    July 24, 2014 1 Photo

  • Amazon Kindle Service [Duplicate] Amazon unlimited e-book service is limited NEW YORK — Amazon’s new “unlimited” e-book service lets you read 600,000 books. That sounds like more than you’ll ever read, but I found myself struggling to find the books I wanted. It turns out that the library of 600,000 is bit like a small bookst

    July 21, 2014 1 Photo

  • BIZ GN140720 blue barn berry farm image 01 New berry farm also offers classes, treats SYRACUSE — A retirement hobby has grown into a new agriculture-based business for a local family.Don and Peggy Bucher and Shanda and Chris Sheeren are members of a farm family who operate Bucher Farms along N. 300 East. According to Shanda, her mothe

    July 20, 2014 2 Photos

  • BIZ GN140720 mike gingerich column image Online marketing methods to grow sales Growing sales through selling online is a powerful way to reach more people and extend your market.To sell online means getting in front of the right people in the right places. You want much more of a laser focus than a scattershot approach. It also

    July 20, 2014 1 Photo

Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
AP Video
US Ready to Slap New Sanctions on Russia Kerry: Not Worried About Israeli Criticism Boater Rescued From Edge of Kentucky Dam Girl Struck by Plane on Florida Beach Dies Rodents Rampant in Gardens Around Louvre House to Vote on Slimmed-down Bill for Border Looming Demand Could Undercut Flight Safety Raw: 2 Shells Hit Fuel Tank at Gaza Power Plant Raw: Massive Explosions From Airstrikes in Gaza Giant Ketchup Bottle Water Tower Up for Sale Easier Nuclear Construction Promises Fall Short Kerry: Humanitarian Cease-fire Efforts Continue Raw: Corruption Trial Begins for Former Va Gov. The Carbon Trap: US Exports Global Warming Traditional African Dishes Teach Healthy Eating
Poll

With military action and tensions escalating between Russia and Ukraine, as well as Israel and Palestine, are you worried that the U.S. and other nations may get drawn into these conflicts?

Yes, it is a great concern of mine
I’m a little worried, but not too much
No, I’m not worried at all
     View Results