Global stock markets fell yesterday in the wake of disappointing US and European corporate results while the dollar took its biggest tumble in almost two months after the US Federal Reserve left unclear when it will raise interest rates.

Expectations of further stimulus in Japan have dominated currency trading in recent weeks and overshadowed the US central bank’s policy-setting statement on Wednesday, when the Fed indicated it was in no rush to raise interest rates.

Equity markets retreated after Royal Dutch Shell in Europe reported a more than 70 per cent fall in quarterly profit that was well below analysts’ estimates. On Wall Street, the S&P 500 was dragged down by Ford Motor, which posted poor second-quarter profit.

Ford reported weaker-than-expected profit and declared the US auto industry’s long recovery was at an end, sending its stock and shares of other auto companies into a tailspin. Ford’s stock fell 9.65 per cent to $12.51.

However, Facebook opened at an all-time high of $128.31 after the company reported quarterly results that handily beat analysts’ estimates on Wednesday.

MSCI’s all-country stock index slid 0.07 per cent and the pan-regional FTSEurofirst 300 index in Europe fell 0.75 per cent to 1,341.65.

The Dow Jones industrial average fell 74.03 points, or 0.4 per cent, to 18,398.14. The S&P 500 slid 3.51 points, or 0.16 per cent, to 2,163.07 and the Nasdaq Composite added 1.62 points, or 0.03 per cent, to 5,141.43.

The yen gained against the dollar as investors feared the Bank of Japan will not meet high expectations for a large stimulus package when it concludes a two-day meeting toay.

The dollar fell 0.58 per cent to 104.78 yen. The dollar index, which tracks the greenback against a basket of six major rivals, fell 0.46 per cent to 96.611. The euro rose 0.28 per cent to $1.1086.

US bond prices rose, even after the Fed left interest rates unchanged on Wednesday, as expected.

Benchmark 10-year Treasury notes gained 1/32 in price to yield 1.5113 per cent.