By Sam Forgione
NEW YORK (Reuters) - Stock markets worldwide slumped on Wednesday after a batch of weaker-than-expected corporate results and data showing U.S. economic growth braked more sharply than expected in the first quarter, while the dollar plunged to a nine-week low.
Commerce Department data showed U.S. gross domestic product expanded at an only 0.2 percent annual rate, marking the weakest reading in a year, leading to a lower open on Wall Street.
The data also hit European shares, which already suffered from weak corporate results from companies including Delhaize
"The mixed economic data has been a concern. The low-rate environment is a bubble in itself and it's like riding a balloon until the pin pops," said Andre Bakhos, managing director at Janlyn Capital in Bernardsville, New Jersey.
A stronger euro also weighed on the region's stock markets, with the currency hitting an eight-week high against the U.S. dollar at $1.10990. The dollar index <.DXY>, which measures the greenback against a basket of six major currencies, hit a roughly nine-week low of 94.872 after the GDP data.
Investors also awaited the statement from the Federal Reserve's latest two-day policy meeting, due at 2:00 p.m. EDT (1800 GMT), for clues on when interest rates are likely to be increased.
The Dow Jones industrial average <.DJI> was last down 49.78 points, or 0.27 percent, at 18,060.36. The S&P 500 <.SPX> was down 7.24 points, or 0.34 percent, at 2,107.52. The Nasdaq Composite <.IXIC> was down 19.71 points, or 0.39 percent, at 5,035.71.
MSCI's all-country world equity index <.MIWD00000PUS>, which tracks shares in 45 nations, was last down 1.61 points or 0.36 percent, at 441.02.
Europe's FTSEurofirst 300 index <.FTEU3> was last down 1.72 percent at 1,590.4.
Safe-haven U.S. government bond yields and European bond yields spiked higher in a global bond sell-off as investors awaited the Fed statement. Benchmark 10-year Treasury yields
German 10-year yields
"We breached the upper end of the trading range. People are looking to unload some longs," said Sean Murphy, a Treasuries trader at Societe Generale in New York, on the sell-off in Treasuries prices, which move inversely to yields.
Oil prices rose after news that King Salman of Saudi Arabia had altered the kingdom's line of royal succession in a reshuffle that also affected leadership of the national oil company, Saudi Aramco. [O/R]
Brent crude
Spot gold prices
(Reporting by Sam Forgione; Additional reporting by Jamie McGeever in London and Gertrude Chavez-Dreyfuss and Richard Leong in New York; Editing by Meredith Mazzilli)
