global growth triggering a worldwide share off. european shares firmly in the red after the s&p logs it's worst day in 18 months. >> investors pile into safe haven assets. bonds also benefit from a flight to safety. >> political turmoil in greece.

another headache for investors after prime minister tsipras re-signs ahead of a snap election. >> unlike the usual attitude of many who unfortunately consider themselves entitled to keep their seats and office regardless of the condition and circumstances. i feel the deep moral and political obligation to put in your own judgment everything i did. >> that looks to be fairly strong. you have euro zone business growth accelerating in the month of august. composite number of 54.1 and those pmi point to third quarter growth of 0.4% according to market. they say the weak euro and price cutting is boosting demand.

the market manufacturing flash came in at 52.4 in the month of august versus a consensus view of 52.2 so that is just slightly better than expected but this is unchanged from the month of july in terms of the services number. we have to print a 54.3 in the month of august and that is also higher than forecast and also a touch higher than what we saw in the month of july. i want to tell you that in germany the pmis were better than expected and that helped trim the losses in european markets this morning. services marginally softer but the manufacturing number was pretty strong. the french numbers, those were weak though so another disappointment coming from france. >> as investors digest that latest pmi data here in europe i want to bring your attention to other data impacting trade today. that's chinese factory activity hit the lowest level since march

of 2009. this is the latest data pointing to weakness in the world's second largest economy. the flash pmi at 47.1 driven by weak export demand. closing below the 200 day moving average, down 4.2% in today's trade. what does this mean for the trade across asia? you can see red across the screen. the hang seng index, in fact, on track for the worst week since 2011. in today's trade down 1.5%. you can see in korea down 2% and i want to bring your attention to the japanese nikkei. closing at a 6 week low yesterday. continues to move to the down side in today's trade. right now down about 3%. what are we looking at here in europe? >> look, the ftse falling into correction territory. why is that?

because of its heavy exposure to oil, gas, and commodities. this morning it was off by half of 1%. we trimmed some of the earlier losses. i want to move you on to the european markets. the dax still off by half of 1%. in terms of some of the sectors you have auto stocks underperforming. and technology taking a hit today. for the xetra dax we're close to january lows. overall we're at 7 month lows as well. the athens index is off by 1.4% after the developments overnight with stepping down and calling new elections. we'll talk more about that during the show as well. but overall, yes, there's growth concerns. the oil route is really putting pressure on these european

marke markets. we had a bad day for u.s. markets. pretty ugly. the s&p off by 2.4%. dow jones off by more than 2% and that was the biggest fall in 18 months. all ten sectors negative. consumer discretionary was the worst performing sector look, you had concerns about people cutting the cord and year to date and you have the s&p and dow in negative territory. only the nasdaq is still positive. >> now in this ugly trading session let's get the word from the chief investment officer joining us here on worldwide exchange. a pleasure to have you on the show. a very rough session. not just in the u.s. but here in europe and asia as well. is the flight from risk a mere moderation of the exuberance we have been seeing over the past couple of months or a warning sign of future troubles? >> i think in reality it's probably a bit of a direction.

we vnhaven't had a major correction in over 46 months. it would be no surprise to see a little retracement. obviously it's unsettled some investors in a low volume period. a lot of people are away so that exacerbates the volatility we've seen. >> the question being whispered, is this just a bull market correction or the start of a bear market. what would your thoughts be there? >> i don't think it's the start of a bear market. it is a correction. if it were a bear market driven market then i think we will be looking at growth being pulled back in the states which it's not at the moment. we would be looking for not desen pmi numbers out of europe so the economic fundamentals are still good. >> but there's so many indicators in the trends that are worrying.

for example, we have a sharp rise yesterday up 25% what happened in that month? lehman of course. we're seeing lows close to 208 and 2009, in this scenario does it make sense to raise rates? because it seems either these asset classes are mispriced or the fed got it wrong. >> you could argue that they might actually double guess the market because if they were to raise rates it shows a lot of confidence in the u.s. economy and they have already been on record in saying that they want to return rates to more normal level which is would be sensible because that gives them ammunition in the future to lure them again. so i suspect rates will rise. they may not rise in september. they will rise this year but only by a quarter point. it will be a gradual increase over the next year or so. >> what we have been seeing over the last couple of weeks, to

what extent is that worries about china and global growth and low inflation trade as we have been seeing in oil prices and to what extent is that exacerbated by the low august trading. we're seeing pretty low volumes and high volatility. should we discount that. >> not totally. and the message coming out of china is very clear. obviously whatever they said about joining the imf drawing rights, et cetera, it's more about slow growth in china. they need to stimulate that economy. they had the ammunition to do that. you talked about them selling treasuries which they have been doing and i think they will stimulate growth but from a lower level and china will not be growing at 7% this coming year. it will probably be 5 to 6 in a goodyear. >> we have been seeing the pboc take on many actions to stimulate the economy and prop up their currency. will this prompt other countries

dealing with their own economic challenges? >> sadly there's a race to the bottom here. and we saw the devaluations yesterday which is just an indication but more major currencies such as the turkish lira are ones people talked about further devaluations. the koreans again are head to head with the chinese and the japanese and they need to have a weaker yuan as well. i could see this continue for a little while. >> it does raise questions though. for example, the case of kazakstan. are you not worried about defaults as a result of these moves? >> you should be more worried about corporate defaults in emerging markets. than sovereign defaults. it's not in dollars as it was in the '98 crisis.

>> i want to touch on gold because we saw an interesting reaction in markets in gold over the last five trading sessions. it's been rising so people have been piling into gold as a safe haven and that hasn't happened so much over the last couple of weeks and months. why has gold now moved back as being a safe haven asset? >> well, i'm not a big gold person. i'm not convinced it's a total safe haven but there's risk taken off the table. people have been looking for place to put investment money and a little has gone into gold and it doesn't take much to move the price of gold. it's not a broad market bears are saying the good news is already priced into stocks. where as bulls are saying greece is no longer a big concern. would you be adding positions to european trade at this point? >> overall i don't think greece is a big concern. we saw the bailout approve and i

think we can sideline greece for the moment but i would say you need to be very selective in europe. a number of the higher quality names, the german exporters, et cetera, are coming back in valuation terms but are still not cheap. you need a further set back to look at those names and those two will be looking to compete head to head in china and that may take awhile to come through. elsewhere, yes, selectively in the financials but you need to be really careful because obviously not all banks are equal in europe and some are better funded than others. you need to do your due diligence there and then perhaps at the moment avoid french equities. >> before we let you go, apart from the sectors you just mentioned, what are you buying on the back of the weakness today? >> we have been looking at the mining sector because compared

to the u.k. you have similar yield there is and cost cutting coming through and we'll look again at the leisure sector. >> all right. thank you so much for your time. appreciate it. chief investment officer. >> now on this big market day and after the u.s. market suffered their worst day in 18 months and with europe of course on course for its worst week of the year, how are you positioning yourself in today's trade. join in the conversation here on worldwide exchange. get in touch with us by e-mail, worldwide@cnbc.com. our personal handles are on the bottom of the screen. please join the kwer conversation. u.s. futures pointing to a lower open after s&p 500 and dow locking in the worst day of the

year. who would have thought it would come in august. >> sometimes you see that in august because volumes are so low to volatility is exacerbated. there may not be a lot of news flow but that's the reason why sometimes people do get caught out by some of these surprises. >> a lack of liquidity and lack of volumes are playing a role in the move in global assets but no matter what it hurts to be down 6%. >> unless you're short the market. maybe you it's not so bad for everyone out there. a lot of people, maybe they're positioned this way so maybe it's not that bad of a day. >> there's two sides of a trade. that's what makes the market. >> still coming up on the show, shares of hp slump. we compute the i.t. struggles next.

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welcome back. it's a busy day for the markets but a lot happening in greece overnight. prime minister tsipras re-signed and is calling for new elections to strengthen his grip on power in those aelections. ahead of that we're getting reports that the greek

opposition leader that's head of the new democracy party is holding talks on whether the current parliament can form government and he wants to seek a solution to avoid the adverse impact of early elections. now this comes as greek state television is reporting that the far left wing is to break off and form a new party. last night, tsipras said the mandate he received in january has now been exhausted paving the way for a fresh vote. most likely in september. speaking in a teleadvised address, he had taken the decision now that his, quote, difficult cycle had come to an end. >> you finally with your vote will judge everyone and those that gave the battle inside and outside the country for greece not to find itself in front of the firing squad and those evoking continuity recommending the view that greece needs to be loaned therefore a memorandum

but committed the inconsistency to convert into a minority the first country to the left. >> we thought things were going so well when it comes to greece and all of a sudden they drop a bombshell. but this is what you have to expect. that big u-turn and call for a rev ren dull and then this. and he's the editor of the newspaper very respected in greece and he says it's not a surprise that he's calling for fresh elections but it's more about the timing. he is doing it earlier than many people had anticipated because what would have been wiser for him is to wait for the first review of the first bailout -- of the third bailout or to build more trust with the lenders but he didn't give them a chance to do that. he wants to do it now because he says in part that new leftest party that is forming, he doesn't want to give them a

chance to actually -- >> gain momentum. >> and known for his bold moves. think back to the referendum among other votes he put into place. from an investor point of view you have to wonder how this snap election and political uncertainty will result in a delay in fiscal and economic reforms greece says it will put together. >> it probably will. this is what we've seen time and time again. whenever we have political uncertainty it has a huge effect on the economy and consumer confidence and fiscal reforms. luckily this fresh election is probably a month away so maybe it wouldn't have uncertainty for too long. >> will that person disagree with reforms greece already put into place with it's creditors. a lot is up for stake here. >> we probably wonlt see a change in leadership because tee pris would still get the mandate. that's why he's taking this big gamble. he's hoping for a stronger

mandate. the question is will he get the absolute majority. most people don't think so but you never know. >> his political uncertainty increased the demand for safe haven assets. the german bund is at a three week low. that's the yield so you're looking at 0.56% as investors keep an eye on the developing story out of greece. >> let's take a look at the top stories right now. dutch oil and gas transfer firm, one of the biggest fallers on the stoxx 600. the company left it's outlook unchanged though but warned of a slow down in asia. you can see the stock getting a big hit today down better than 15%. >> the disappointing manufacturing figure out of china weighing on microchip designer arm. china's consumers could make up to as much as 60% of global demand. it sells it's designs to many of the major chip makers worldwide and arm off by 2.6% and

obviously big supplier to apple. >> meanwhile, italian oil and gas companies shrugging off today's decline in the oil price. the businesses partner parent company spoke positively about future cooperation following a meeting between the them, up about 1.8%. >> and a big mover in the u.s. is down about 4% in after hours trade after the company's profit fell 13%. break down the details. >> shares of hewlett packard generated modest losses after share of the company reported earnings of 88 krenlts a share beating the average analyst estimate of 85 cents. sales narrowly missed the mark at $25.3 billion. estimates were for

$25.4 billion. also the current quarter outlook fell shy of some analyst estimates as well. hp has been dealing with a number of head winds for the business including slowing personal computer sales and the ceo spoke about that and other areas of weakness and other challenges on the company's earnings call. >> even with the separation process heating up we remained focus and continue to execute well across the businesses. we did face a challenging spending environment in the third quarter with soft consumer spending, continued weakness in russia and china and stock market volatility driving uncertainty. >> she also said the company could see continued weakness in that pc and printer market for several quarters to come. the current quarter will be the last full quarter that hp exists as we know it today. the company will be splitting itself into two separately publicly traded companies in november. one focussing on personal computers, printers, and systems and the other one focused on

business for enterprise services. the stock settled during a 52 week low for the regular trading session and they're down 32% year to date 2015 so they'll be keeping a close eye on how they post earnings in the first regular trading session. back to you guys. >> no one was expecting a blowout quarter from the old tech giant as they look to resist turnaround in this break off of assets but come on. when you take a look at their revenue, pcs are down 30%. printing revenue down 9%. every revision saw a drop in sales growth. >> and we saw pricing pressure really accelerated. i just wonder, meg whitman is on a road show to advertise interest and drum up support for hp enterprise and hp inc which is going to be the pc and printing part of the business. i wonder what is going to be interested in the pc and printing business. everyone will probably want to buy into hp enterprise. >> that's interesting that despite the slowing growth they

have been seeing which has been telegraphed in earnings over the past quarters they're still number one when it comes to printing. they're still commanding leadership despite slowing growth so i guess they do have that. >> yeah. >> year to date, shares down 32%. >> meg whitman will be on for an interview at 9:00 eastern time. >> raising revenue after reporting better than expected second quarter adjusted profits and revenues. this time around we have josh lipton giving us the details. >> sales force reported and beat and more importantly sounded a real note of confidence about the future. reported eps of 19 cents on revenue of 1.63 billion. >> sorry. looks like we got the wrong one. but interestingly enough sales force not the best report and

the stock was down i think about 4% after hours trade. >> it was down quite a lot and you know what's really puzzling is that this is still a growth stock but they're not making any money and they're really the leader in their field. but as long as it's still a growth kpaechb, yes, it can command those multiples but at what point is it actually going to transition into a value company that actually delivers profits? >> it will be far away from that. sales force well-known for being a high growth company and similar to amazon focused on growth. they are a big player in the cloud space but as many people are saying, cloud at some point will become highly comod tiezed. that will result in squeeze r margins going forward. >> let's talk retail. gaps profit has fallen for the second quarter with net income down by more than a third.

the company is being hurt by the strong dollar, shipping delays and weak sales at its name sake stores. despite the lower sales number, the ceo expressed optimism about the state of the apparel sector in the company's earnings call. >> from where i sit, across all of our businesses our job is to deliver regardless of the noise that's out there today and what i see is, i see a consumer who has confidence i see dollars being spent and an opportunity for tous get more than our sharapova as i look forward and i'm optimistic. >> quick look. off by 1.7%. >> the hang seng closes at the lowest level since may. we cross over to asia. that's next. don't go away.

welcome to worldwide exchange. >> here are your headlines from around the world. >> euro zone pmi data comes in ahead of expectations but it's not enough to get european equity markets out of the red. >> that's right. manufacturing data falls to a

6.5 year low sparking fresh concerns about the country's economy. >> investors piling into safe haven assets. gold rallying to six week highs as they also benefit from flight to safety trades. >> political turmoil in greece. another headache for investors after syriza splinters and tsipras re-signs a head of an election. >> translator: unlike the usual attitude of many that consider themselves entitled to keep their positions, their seats, their office, regardless of the conditions and circumstances, i feel the deep, moral, and political obligation to put in your judgment everything i did. >> all right. we've got some finances data out of the u.k. and it's pretty good. showing the first july surplus since 2012. the u.k. july income tax receipts, 18.5 billion sterling. that's the strongest july since

records dating back to 1997. we have the july public sector net cash requirement down 3 billion. that's not too important. but public sector and banks down 1.29 billion sterling. so that's roughly in line with expectations but yeah, july is a bumper month for public finan s finances. >> here's another market catching the attention of investors. the shanghai composite closing down 4.3%. it's down 30% since june 12th landing the index firmly in bear market territory. where are they heading from here. correct me if i'm wrong, sri, not only is a fundamental story weakening but technically speaking shanghai composite either close or has already broken it's 200 day moving average? >> there's more to come in this

one given the levels of leverage and it's interesting that usually what we see, you know, we have lousy data, no different this time around but the market front runs the idea of more stimulus, more monetary easing, more cuts, whatever shape it may be and it usually is supportive for equities but not this time around because the levels of leverage still relatively high in the market so really seems to be the catalyst for deleveraging and that's why we saw an outsized reaction to the down side. in terms of levels we're getting close to key technical levels on the support side. 22,000 is another figure mentioned for the hang seng. in terms of policy support it could come very soon. some people i've been talking to are saying that there is a risk. there is the possibility that we could see some policy support as

soon as this weekend but if china is going to do it. if the pboc in beijing is going to make that move over the weekend it has to have a relative degree of shock and awe associated to it. it has to be a move on the monetary side and fiscal side for the markets to sit up and take notice. so watch out for that. it could or could not happen as early as the weekend. that is what i am hearing but they have enough ammunition to move and support the markets and to support the economy. the other wildcard is whether the data on the manufacturing side and slow down will be effected in the future months because china already devalued the currency. so you have to expect, carolyn, at some point in the cycle that weaker currency tail wind is going to have juice the export demand and we should see that in the new export orders but that will take time but hopefully we

could see something of a recovery and stability in the manufacturing numbers. we'll wait and see. that's where we stand. back to you now. >> sri thank you for that. that's the hope when you talk about exports. >> the emerging market route continues with currencies bearing the brunt. wednesday's devaluations marked the latest chapter in renewed currency wars. although the turmoil would continue it could have opportuniti opportunities. >> we're seeing currency pegs fall and emerging markets weaken. that's sending shockwaves to other markets and at the end is the equity market in the u.s. we're seeing a classic overshoot and it starts spreading and that causes heightened risk aversion. what happens next is more of the same but it would create

interesting investment opportunities in the future. >> let's talk more about emerging markets and where to make money. joining us is simon, chief em strategist. good morning to you. i want to pick up on the point that sri made. as a result of the devaluations you would expect exports to pick up at some point. is that wishful thinking or will it happen? >> it's a nice thing to think about but it's going to take time. the whole world is in a mess at the moment, the u.s. is growing still. it's a decision you have to make at some stage. we saw in the 1990s that a lot of countries got hit because they had fixed peg exchange

rates. now we have flexible exchange rates and this is what has changed basically. >> the question though is at what point this vicious cycle of outflows of equities of currency markets, debt to a lesser extent is going to stop? it has turned into a vicious cycle. is there anything that could stop it? the fed hike for example? >> that's an interesting point. i haven't thought of that quite honestly. if we see the fed hike maybe some people would see that as a back to normalization but i don't think it's going to support very much the emerging markets in the short-term but we'll definitely see some opportunities building up in the currencies given that we have moved such a long way. how far should this go? . there's no real reason. >> what are those opportunities you talked about? >> when we get to early september given that funds have a lot of cash still. people are holding on to a lot of cash in emerging market

funds. it's not been invested yet. it's different to 2013 when people are building up cash by selling bonds in their holding because they were scared. that hasn't happened this time around and there the opportunity comes early september before the fed hike. we're getting closer to early september. now the markets pricing in probability of a rate hike. only three days ago it was 50%. these things will be changing in the next two or three weeks and we'll get an opportunity as we get closer to the fed meeting. >> i wanted to take a step back and point out what's happening around the world. it is a mess. the stock index is in bear market territory. the indonesian equity index down over 15% from its recent highs. a rough ride for a lot of the emerging market currencies but when you look at this global picture, what worries you the most? >> the politics worries me the

most these economic fundamentals and financial markets we can take care of that. they have been dealing with stocks and retail investors for decades. i remember shanghai down the street, huge electronic screen subsidiary of the stock exchange 15 years ago. so much more experience in investing in stock. it's the politics. >> what are you trying to reference? is it greece or something else? >> it's greece. it's a combination of greece, a lack of people knowing exactly what to do in the next four or five years if you look to the european union there's a lot of misunderstanding about what happens in emerging markets but also at home and we need stability and until we get that they won't be calmed. look into the u.k. everybody is talking about the brexit being about will u.k. decide to exit the european union? these are the fundamental most important things. >> we always try and engage what the next shoe is that will drop after we saw, you know, the

devaluations and the similar things happening. you say the mideast could be next. why is that? >> if you look at spreads they jumped quite a long way in the last three or four days. anything that has a fixed exchange rate at the moment in emerging markets will have to refocus on that and as we've seen with china, even that hasn't supported a peg, if you like, of the currency. so if we look to countries i think saudi arabia obviously clearly the most exposed given it doesn't have as much reverses as other countries. >> hadley, you're our middle east expert. we had a really tough time for the index but they have been opening up their market to investors. do you think in hindsight that was a bad idea?

>> they had a soft opening and i think they did this on perfect. you have the whole month of ramadan and another month where everyone is on vacation. they lost about $50 billion on the last month alone. that's due to a couple of factors. lower oil prices obviously. that's making a problem because of the worries there. they're worried about the leadership. they're wondering if the new king knows what he's about because this say top down society and there's low liquidity. there's nobody in the country right now so some problems but there's still a bit of optimism. it will depend on the budget for next year. will we still see this level of state spending? >> you're right we have this technical level which is very important. we breach that on the down side. there's plenty of open on the down side and obviously the middle east and any country exposed to china and oil. that's probably the worst

combination at the moment. >> what's the break even for saudi arabia? that's pretty high actually. >> yes, the imf came out with calculations on the currency count. about $103 on the fiscal side on the budget which is quite a long way at the moment but this is why you're seeing current account deficits come in and traditionally had huge surfaces before. this is a massive change that you see. let's see what happen with the oil price but that doesn't seem to indicate anything. >> in the meantime the emerging market currencies have high exposure to oil including the chilean and columbian pesos, how does this story end? >> not any time soon. the next several weeks will be targeted. it's not over with the oil and there's a lot of exposure there and places like brazil, they have exposed themselves, chile,

peru, to china in the last ten years given that they focus on commodities. >> hadley, how closely are the saudis watching the oil price and if it break bess low $40 will that prompt any action? >> that's interesting to watch quite frankly and it is a top down society so there aren't that many clues about what's going to happen next there. certainly we have a new crowned prince within his -- it's not just being defense minister and being at war in yemen but taking care of the economy so this will be interesting to watch going forward. >> absolutely. another negative session for oil overnight. we're looking at wti crude trading lower. brent crude at $46.27. thank you for joining us on the conversation. great to get your perspective. >> meantime, thai authorities say monday's bomb attack in bangkok was likely planned at least a month in advance by a network of ten or more people. thailand's worst ever bombing

which killed 20 is no longer thought to have been masterminded by an international terror group. no one claimed responsibility for that blast. >> coming up on the show, gold surpasses six week highs as investors look for a port in the market storm. we'll take a closer look at the chuyny yell shiny yellow metal. that's coming up next.

welcome back. quick look at commodity prices. wti crude is down in this trading session. currently changing hands at 41.03 so we're off the 40 something levels yesterday. a lot of concern is that we'll break through the psychologically important 40 levels but we saw wti crude rolling over september to october but it's still on track for an 8 week losing streak and we vn seen that since january to march of 1986. it's a pretty big week for markets. spot gold is unchanged this morning but higher by 2% in yesterday's trading session. that was about the only thing that did rise in yesterday's trading session. we have the safe haven status that appeals to a lot of investors. also you have a lot of concern

that the fed won't be hiking in september but we still have no inflationary pressure you have to wonder how long lasting that's going to be. gold is up 4.8%. quick look at the gold stocks which have been doing very well of late off by 1.24 and up by 0.68. >> how do you make money in the market? matt, a pleasure to have you on the show this morning. let's talk about the rise in gold prices. is that simply in response to the global currency volatility that we're seeing? >> good morning. i think you said it well actually. there's two things here. there's china and the u.s. in china as i'm sure you have been discussing all morning the economy is slowing and stock market is falling and the currency is being devalued and that drives oil prices higher. fear, uncertainty and the belief that the authorities are losing

control but it's also about the united states because the con ken sus on a september rate hike has gone and low interest rates are good for prices. >> it's estimating a december rate hike now. if the fed does delay, how does that change your gold outlook? >> you have to think about if it's a delay only to december then what can it really change? the question going up is if it's not a delay but actually a cancellation of the rate hike. we don't see that. we think the u.s. economy doing better. it's not doing brilliantly but better and we think the fed will raise rates in september or december so gold prices will probably head down but why is gold finding it as the safe haven asset? we vn seen that over the last couple of months or so. what's changed in the last

couple of weeks? >> you're right. a month ago it was down and out. you did see it at the start of the year and we saw swings at foreign exchange rates. gold is a currency as well as a commodity and when other currencies seem to be performing badly or strangely then gold gets more attention. >> could other precious metals follow gold if it continues to rise? >> we have seen a descent rebound in the other precious metals but you have to remember that silver, platinum, these are industrial metals or consumer metals and they rely on chinese consumers for a huge part of their demand. so although the long-term outlook is pretty positive given the chinese consumer should be spending more, in the short-term, it's harder to see them going up if gold does for that reason. >> matthew, the price tag for

gold currently 1152. what's your outlook for the rest of the year. we don't have much inflationary pressure. maybe the fed hike moved out to december. where do you see gold trading? >> the exact timing kind of depends on the fed hike but if we do get a rise we see it heading back to 1050 before that hike and a gradual increase ahead of that. because our analysis shows they're not so bad for gold actually. >> all right. matthew, thank you for your time. appreciate it. matthew turner precious metals analysts. now twitter shares closing just shy of its $26 ipo valuation in late 2013. remember on its first day of trade on the 7th of november that year the stock spiked ending the session at $44.90 a share. but over the past six months twitter shares have plummeted 46%. >> yeah, absolutely. it's not just twitter. take a look, facebook, amazon, netflix, and google.

yesterday those were the stocks that really had commanding market leadership on the nasdaq 100. it seemed like these stocks were vulnerable to any external factors that would weigh on markets but yesterday they saw the brunt of the selling, netflix, amazon losing more than 3%. facebook down about 5% despite that earnings a couple of weeks ago. google also down by around 2%. some could say this is just giving investors a reason to book profits because these stocks had a very nice run in 2015. it wasn't just the high momentum players or stocks that moved to the down side yesterday. a lot of the old tech names like intel, quallcomm so the pain felt across the tech sector and sec one of the worst performing sectors on the s&p 500 in yesterday's trade. >> just a couple of days ago we talked about the fact that this market hasn't been moving much

outside of its range. and then we asked our guests, well, what would make it move outside of that range? now we're seeing a lit bf tle bf a break to the down side. is it more than a tiny reaction or more than that. a big bear market we're heading into? >> or will the bargain hunters come in at some point. especially in the tech sector these have been very attractive. if equity multiples do come down it might open up a good-bying entry for some of the bulls out there many were expecting 0.2% jump or 0.3% jump. but that isn't what we got. that then tells us that janet quell len faces a tricky

decision as to whether they should move rates in september. >> critical juncture for the markets. tell us how you're positioning yourself, what you're buying, what you're selling in this market sell off. do you find this is a good-bying opportunity or do you sell on the news. >> it could be a very interesting day in today's trade given the sell off in asia and we're looking at european markets at multiweek lows. the u.s. market suffering their worst day in 18 months europe on course for the worst week of the year. get in touch with us by e-mail worldwide@cnbc.com. we have been getting your tweets this morning. he was just tweeting us saying this type of volatility, the markets are beginning to look oversold. relief rally is possible but trend remains to the down side. >> he likes cash.

he likes the swiss frank. the euro, and bunds. if the crisis deepens he likes gold physical. interesting given that we talked about gold and it's recent rise. he says time to sell volatility and buy discount certificates: quality is still too expensive and stuff is getting cheap but nobody wants to buy it so nothing to buy at all. >> edwin peterson tweeting in saying i had positioned myself to buy after the fed causing the dip in september but now i'm sitting on a bunch of cash watching cnbc. >> do stay tuned in because we do want to keep an eye on how equities continue to trade after that sell off in asia. yesterday they came on cnbc and they were referring to the volatility that this is the new normal and the real surprise

would have been if we did not see volatility in asset prices a head of a fed rate hike. perhaps it should be expected. we shouldn't be worrying so much. >> let's talk about tropical storm danny. it's been upgraded to a hurricane as it heads toward land. the national hurricane center says winds have picked up to 75 miles per hour but the storm is likely to remain a weak category 1 hurricane. danny is expected to reach the islands by monday morning. >> three firefighters have been killed in the fight to control wildfires ripping through washington state. there are more than 100 separate blazes across the west of the country covering over a million acres. miguel filed this report. >> it was described as hell on earth. firefighters rolling into a fire fight that cost three lives. the blaze erupted wednesday. three firefighters ages 20 to 31 involved in a vehicle accident. the county sheriff says they survived the crash but not the

flames. today the governor called the raging fires unprus deecedenteu >> these fires burned a big hole in our state's heart. they're protecting small towns and they're going to remember them. >> four other firefighters were also trapped and injured. one with critical burns. the calls for evacuations immediate and so was the danger. >> i just heard that three firefighters were killed in the fire. it's just really hard. >> the tiny towns of twisp and winthrop were pinned between multiple fires and then came the inferno between them. >> it just came so fast. >> winds tearing across these mountains dropping into the valley below. fire a blow torch moving at 20 miles per hour. >> it would just move in the direction of the wind. possibly over crews and in front of them and then that can cutoff

the escape routes. >> across the west in this deadly fire season, these are the extremes. this wall of flames coming face to face with firefighters. >> they put their lives on the line, work 16 hours a day, sleep in a tent and do it for weeks. protecting the lives and homes of those they've never met. tonight in washington they face a new danger catastrophic winds in a fire fight that promises to get even uglier. >> back to markets it was a brutal day on wall street with the dow losing 358 points. futures pointing to a lower market open. more coming up on worldwide exchange. through allergies. try zyrtec® for powerful allergy relief. and zyrtec® is different than claritin®. because it starts working faster on the first day you take it. zyrtec®. muddle no more™ .

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welcome, you're watching the second hour of worldwide exchange. >> these are your headlines from around the world. >> china marketing plummet after data falls to a new low. >> u.s. futures point to lower open after s&p with the worst day in 18 months. >> gold rallying to a six week high as bonds benefit from a flight to safety. >> political turmoil in greece. another headache for