Global stocks tumbled the most since June, as the biggest drop in emerging markets in two months prompted investors to seek havens in Treasuries, German bunds and yen. Natural gas reached a three-year high.

The MSCI All-Country World Index fell 1.9 percent at 4 p.m. in New York. The Standard & Poor’s 500 Index slid 2.1 percent, pushing it to the biggest weekly drop since June 2012. The MSCI Emerging Markets Index tumbled 1.4 percent, extending its 2014 decline to 5.2 percent. The yen rose as emerging-market currencies had the worst selloff in five years. Ten-year Treasury yields slipped to an eight-week low. Natural gas surged above $5 for the first time since 2010 on forecasts for cold weather in the U.S.

David Fuller's view

A reaction has commenced on Wall Street which should at least test the rising 200-day moving average and could easily be the first 10% plus correction for quite a while. A close above 16,600 for the Down Jones Industrial Average would be required to negate this outlook.

(See also yesterday’s lead item and comments below, not least Eoin’s.)