U.S. stocks had their worst day in seven weeks Wednesday amid a broad decline in global equities as technology shares were roiled by disappointing results from Chinese internet giant Tencent Holdings Ltd. and copper sank into a bear market, weighing on commodities. Crude oil slipped below US$65 a barrel following a report that American stockpiles rose the most since March 2017.

The S&P 500 Index declined for the fifth time in six sessions, while the Nasdaq 100 Index posted the weakest performance among major U.S. benchmarks. Strong retail sales figures did little to mollify investors, as Macy’s Inc. plummeted 16 per cent, the most since May 2017, despite beating expectations. Tencent’s first profit decline in at least a decade also rattled emerging-market equities.

“Tech stocks are pulling the markets lower,” said Naeem Aslam, chief market analyst at TF Global Markets U.K. in London. “We are seeing investors becoming more concerned about the geopolitics.”

Tesla Inc. dropped more than 2.5 per cent after a report that the U.S. Securities and Exchange Commission sent a subpoena to the company regarding Elon Musk’s privatization plans and his comments about having secured funding.

Raw-materials producers dragged down European shares as copper and zinc sank to the lowest in more than a year. In Turkey, the lira gained after the country’s banking regulator moved to deter short-selling in the currency. While the nation’s assets stabilized, other emerging-market currencies continued to buckle as President Recep Tayyip Erdogan intensified a diplomatic feud with U.S. President Donald Trump by issuing a series of new import tariffs.

With the bull market in American stocks just a week away from becoming the longest in history, investors have turned increasingly cautious amid lingering global trade tensions. Markets have been rocked over the past week as turmoil in Turkey weighed on sentiment across many emerging- and developed-nation assets. Qatar promised Wednesday to invest US$15 billion in the Turkish economy to help the country avert a financial crisis.

Elsewhere, Hong Kong intervened to defend its peg to the dollar for the first time in three months after the local currency fell to the weak end of its trading band. Several markets, including Poland and India, were closed for a holiday.

Stocks

The S&P 500 slumped 0.8 per cent to 2,818.39, the biggest decline since June, and the Nasdaq 100 dropped 1.2 per cent. The Stoxx Europe 600 Index decreased 1.4 percent to the lowest in more than a month. The MSCI All-Country World Index dipped 1.1 per cent to the lowest in five weeks. The MSCI Emerging Market Index fell 1.8 per cent, reaching the lowest since July 2017.

Canada's main stock index dropped along with U.S. markets as a currency crisis in Turkey and disappointing indicators from China have sparked global growth fears and sent commodities prices falling.

The S&P/TSX composite index closed down 182.17 points, or 1.12 per cent, at 16,148.5 in a broad-based decline led by base metal miners, though cannabis stocks rallied sharply after Canopy Growth Corp. secured a $4-billion investment.

The Canadian dollar averaged 76.12 cents US, down 0.29 of a U.S. cent as copper, crude and gold prices fell.

 

Currencies

The Bloomberg Dollar Spot Index rose 0.2 per cent to the highest since June 2017. The euro was little changed at 1.1345. The Japanese yen climbed 0.4 per cent to 110.68 per dollar. The Turkish lira surged 7.5 per cent to 5.9101 per dollar. South Africa’s rand plunged 2.5 per cent to 14.597 per dollar, the weakest since September 2016. The MSCI Emerging Markets Currency Index fell 0.6 per cent to the lowest since May 2017.

Bonds

The yield on 10-year Treasuries declined four basis points to 2.8569 per cent, the lowest in a month. Germany’s 10-year yield slid two basis points to 0.304 per cent. Britain’s 10-year yield decreased four basis point to 1.225 per cent.

Commodities

The Bloomberg Commodity Index fell 1.9 per cent to the lowest since July 2017. West Texas Intermediate crude slid 3.3 per cent to US$64.86 a barrel, the lowest since June. LME copper sank 4 per cent to US$5,801 per metric ton, the lowest in 13 months. Gold declined 1.7 per cent to US$1,174.42 an ounce, the weakest since January 2017.

- with files from The Canadian Press