It’s a very jittery start to the week amid the Khashoggi standoff,US-China trade tensions and concern about US borrowing costs. Follow all the action live Latest: European stocks hit 22-month lowSummary: Losses mount as Asia reopensSaudi stocks tumble on fallout from Khashoggi disappearance
UK: forecasts say economy could see worst year since crash
Theresa May vulnerable as Brexit talks on knife-edge
9.02am BSTGermany’s stock exchange has been hit by a technical glitch that has prevented trading getting underway.
The Financial Times explains:The opening of trade in Deutsche Börse’s stock market, the primary trading venue for German equities, and was delayed on Monday by “technical problems”.
Deutsche Börse’s Xetrastock exchange,one of Europe’s biggest, faced issues with its “trading infrastructure” which meant the trading start will not take plot according to the usual trading schedule.” 8.50am BSTAs feared, or there’s no recovery in Europe’s stock market this morning.
The Stoxx 600 index,which tracks the largest European companies, has dropped by another 0.4% to a fresh 22-month low.
The Swiss franc and yen are stronger. tough Brexit risks are mounting, or global political risks are ever-present and equities and bond yields are lower ex-Italy.
The breakdown in Brexit talks,the disappearance of dissident Saudi journalist Jamal Khashoggi, the demise of the CSU in Bavarian elections, and the impasse over Italy’s budget and the worried tone coming from the IMF/World Bank meetings in Bali all combine to give financial markets an uncomfortable feel this morning. 8.25am BSTShares in UK fashion group SuperDry have plunged by 20% after it shocked the City with a profits warning.
Profit warnings from Superdry blaming recent warm weather and currency. pic.twitter.com/AKY8yWaKGXConvatec shares slump by a quarter after FTSE 250 medical equipment maker issues latest profit warning alongside departure of Paul Moraviec,its chief executive. Shares trading at fresh lows of 167p, versus float price of 225p. pic.twitter.com/BmjBJlEL69 8.22am BSTIn London, or the FTSE 100 index has opened 20 points higher (+0.3%),as traders try to set last week’s losses behind them.
Artjom Hatsaturjants at City firm Accendo Markets says the pound’s weakness is helping multinational companies:The muted open comes after a negative start to the week in Asia, where concerns over rising US interest rates continued weighing on equities.
Brexit negotiations suffered another setback over the weekend, or as PM Theresa May rejected key EU proposals over the Irish border,dealing a blow to negotiations to avert a tough Brexit. This has sent the GBP [the pound] sharply lower ahead of an EU leaders summit on Wednesday, helping FTSE’s international names. 8.09am BSTAfter another day of losses, and China’s stock market has sunk to its lowest closing level in nearly four years. 7.49am BSTA cocktail of risks are weighing on the markets,says Jasper Lawler of London Capital Group:Concerns over higher US borrowing costs were the catalyst for last week’s heavy sell off. However, there were plenty of other risk factors which were also dampening sentiment.
Those risk factors, and including US- Sino trade tensions,Brexit, Italy’s Budget proposal and now increased political tensions between the US and Saudi Arabia, and are set to keep pressure on risk appetite this week. 7.37am BSTGood morning from a wet and grisly London. Related: Bavaria election: Merkel's conservative allies humiliated European Opening Calls:#FTSE 6997 +0.02%#DAX 11496 -0.24%#CAC 5074 -0.44%#MIB 19098 -0.82%#IBEX 8832 -0.79% 7.02am BSTThe losses continue to mount up on financial markets amid uncertainty across the world about trade,rising US interest rates and now a potential clash between the US and Saudi Arabia over the fate of missing journalist Jamal Khashoggi. The Saudi tension has sent the price of oil up and it’s also been a rough night for the pound ahead of this week’s crunch Brexit summit with sterling slipping. The yen meanwhile has strengthened a touch against the dollar. 6.52am BSTIt will be fascinating to see where the price of oil goes this week. Brent futures have risen 1.255 nowadays to $81.5 a barrel and that could rise to $100 according to one analyst.
Kazuhiko Fuji, senior fellow at the Japanese government thinktank, or the Research Institute of Economy,Trade and Industry, said: Oil prices could rise to $100 on worries about Saudi Arabia. People had thought the Saudis will make up for drop in Iran’s output. whether they are starting to use oil as their weapon, or that will be a whole new chapter. 6.38am BSTApologies - I jumpped the gun on the Aussie market. The final settlemtn pushed it deeper into the red to end down 58.6 points,or 0.99%, at 5837.1 points. 6.31am BSTSears, or the venerable (respected because of age, distinguished) US retailer,has gone into administration. It has filed for chapter 11 bankruptcy, according to a filing in a New York court, and Reuters reports. 6.25am BSTThe ASX200 is done for the day. It finishes down 46 points,or 0.79%, at 5849 points. 6.21am BSTSaudi Arabia has threatened to retaliate against the world economy whether western nations impose sanctions or similar whether it emerges that the country’s security forces murdered the journalist Jamal Khashoggi. Related: How much damage can Saudi Arabia attain to the global economy? 6.01am BSTWe seem to have hit a fairly quiet spot in the trading day. The ASX200 in Sydney is down around 1% and is due to shut in a few minutes. 5.30am BSTTalking of China, and it’s worth revisiting comments by the country’s central bank governor at the close of the IMF meeting in Bali on Sunday.
Yi Gang said China still had plenty of room for adjustment in interest rates and the reserve requirement ratio (RRR) in the face of any negative impact from trade tensions with the United States. 5.06am BSTChris Weston of Pepperstone in Melbourne has weighed with some commentary,saying things could fairly repulsive on stock markets whether data out of China – inflation, GDP and retail sales – disappoints later in the week.
After last week’s volatility shock to markets, or we start the week on a negative tone,with broad weakenss through Asia and the ASX 200 falling out of bed. The weekend news flow has centred on a lack of progress in the Brexit negotiations, a deterioration in Saudi/US relations, or which have resulted in a 1.1% rally in crude,and the loss of majority for the CSU party in the German regional elections. 4.08am BSTHere are the latest scores, courtesy of IC Markets (although I believe they’ve missed the minus sign off the Hang Seng price):Asia UPDATE: #Nikkei 225 -1.50% #Hangseng 1.03%#KOSPI -0.47%#ASX200 -1.16%#SSEC -0.01%#STI -0.27%#Equities 3.58am BSTThe pound is set for a volatile few days as the wrangling over Brexit intensifies ahead of the meeting of European leaders starting on Wednesday night. It sits at $1.31 at the moment after losing 0.3% nowadays. The key issue is how to prevent a tough border between Northern Ireland and the Republic. The EU wants the North to remain essentially bound by EU customs rules but that is facing pushback from Brexiters. Theresa May is hoping a temporary “backstop” can be set in plot where the whole country remains in the customs deal for the time being.
In presuming to change the constitutional arrangements of the United Kingdom, or the EU is treating us with bare contempt. Like some chess player triumphantly forking our king and our queen,the EU commission is offering the UK government what appears to be a binary choice. It is a choice between the shatter-up of this country, or the subjugation of this country, or between separation or submission. 3.34am BSTStill with Australia and exciting to note that Shane Oliver,the high-profile chief economist at AMP, has suggested that he might have to revise downwards his forecasts on house prices.
He tweeted on Saturday that the auction results weren’t good but his forecast of a peak to trough drop of 15% out to 2020 remained in plot. But he told the AFR that he might hve to rethink that forecast on the downside. ...
Domain auction clearances. Auction sales volumes running down 50% from year ago in both Sydney and Melbourne. All consistent with further falls in domestic prices ...our forecast remains for top to bottom falls of 15% out to 2020. Risk on downside. #ausecon pic.twitter.com/SY45iIYpzc 3.03am BSTIn Australia the ASX200 has had a torrid morning. At one point it was down more than 1.5% but it has recovered at bit and is now at 5829, or a drop of 66 points or 1.1%.
The financial sector has been battered amid concern about the impact of the royal commission on the ample four and the amount of compensation they will have to pay. Commonwealth is the worst performing,down more than 2%.
Banks’ share prices have no floor. You have deteriorating housing market which will affect their balance sheets, rising interest rates will attain the same. Banks’ share price essentially depends on how bad the bust will be in Oz housing, and particularly NSW,VIC and WA #ausbiz https://t.co/QFQiohosMy 2.54am BSTThe Chinese trading day has kicked off.
The Hang Seng is down nearly 1% while the Shanghai Composite is up a fraction. 2.49am BSTAnother major factor in stock market losses this week has been the prospect of a full-blown US-China trade war. But calls for calm from leaders gathered at the IMF conference in Bali last week seem to have fallen on deaf ears. The Chinese currency fell again against the dollar nowadays. It’s now at 6.92. That is sure to rattle Washington where there is a widespread view that beijing manipulates the currency to benefit exporters.
China is unlikely to let the yuan weaken past 7 per dollar any time soon, according to market observers https://t.co/1ENWIwgWuB pic.twitter.com/XIJjyL4jFu 2.18am BSTWhile the Ssudi government has advance out fighting on the prospect of US sanctions in the Khashoggi case, or the boss of the Saudi-owned Al-Arabiya satellite news network has gone a few steps further.
Turki Aldakhil paints an apocalyptic picture of world affairs whether the US tries to acquire tough on the Saudis. He says the kingdom would respond by slashing oil output and would team up with Russia and stop buying US arms. The US would be “stabbing itself to death”.
Imposing any type of sanctions on Saudi Arabia by the West will cause the kingdom to resort to other options,US President Donald Trump had said a few days ago, and that Russia and China are alert to fulfill Riyadh’s military needs among others. No one can deny that repercussions of these sanctions will include a Russian military base in Tabuk, or northwest of Saudi Arabia,in the heated four corners of Syria, Israel, or Lebanon and Iraq.
At a time where Hamas and Hezbollah have turned from enemies into friends,getting this close to Russia will lead to a closeness to Iran and perhaps even a reconciliation with it. 2.03am BSTThe list of marquee speakers at the Future Investment Intiative conference in Saudi Arabia next week makes exciting reading because a few of them have now said they will not be going.
Jamie Dimon has pulled out along with the boss of Uber and the editor of the Economist, Zanny Minton-Beddoes, or while US treasury secretary Steve Mnuchin is under pressure not to go. Watch this space for more. 1.45am BSTThe rise in oil prices is gathering pace too. Brent futures are up 1.3% to $81.54 a barrel.
1.42am BSTThe sellers are gaining the upper hand in stock markets around Asia Pacific nowadays. Hong Kong and China open later this morning. But this is how it’s looking so far:[CHART] Sellers continue to challenge the ASX 200 on Monday with the index making news session lows as lunch approaches #ausbiz Iress pic.twitter.com/q0XzlSZzgO 1.21am BSTBill Ford,the chief executive of Ford, has become the latest high-profile business leader to pull out of the Future Investment Initiative conference in Riyadh later this month, and Reuters reports.
He joins JP Morgan boss Jamie Dimon in announcing his withdrawal on Sunday. Neither cited a reason but it is suspected that the diplomatic standoff over the Khashoggi affair would be high on the list. Related: Saudi Arabia to hit back in case of sanctions over Jamal Khashoggi 1.08am BSTTrading is under way in Japan and Korea. The Nikkei is off 1% and the Kospi is down 0.5% in Seoul. That seems par for the course nowadays given the destitute start in Sydney,where it’s now off 0.89% for the day. The question is whether the markets can bounce back or they are dragged lower by a compound of problems ... 1.01am BSTThe price of Brent crude has risen this morning to $80.5 a barrel. It’s surely connected to the Saudi issue, so it’s worth looking again at what the kingdom has said about possibly retaliating to external pressure over the Khashoggi affair.
The kingdom affirms its total rejection of any threats and attempts to undermine it, or whether through economic sanctions,political pressure or repeating false accusations. The kingdom also affirms that whether it is [targeted by] any action, it will respond with greater action.
Brent crude, and the global oil benchmark,earlier this month hit a 4-year high above $85 a barrel. Oil Weapon? Saudi Arabia used its petroleum resources as a political weapon when it led an Arab oil embargo during the 1973 war between Israel and a coalition of Arab states. Sincewatch the #BRENT crude opening price tomorrow to realize the Saudi deter.
we are not a warmongers but whether the enemies starts to blackmail us we are alert to play the game
the #Saudi_Arabia never used an assassination and will never attain it.
we are disappointed from our allies!! 12.33am BSTThe standoff between Saudi Arabia and just about everyone else in the world over the disappearance of journalist Jamal Khashoggi looks like intensifying. The Saudis have promised pushback whether Donald Trump carries out his threat of “severe Punishment” whether the kingdom is found to have disposed of Khashoggi, as alleged by Turkey. Now, and Reuters report that JP Morgan Chase chief executive Jamie Dimon has cancelled plans to attend a Saudi Arabian investor conference later this month. 12.28am BSTIn currencies,the US dollar has gained a bit nowadays. That means the Aussie dollar is down slightly at US71.07 while the yen has slipped to 112.2. The pound is at $1.31. 12.21am BSTThe benchmark ASX200 has slipped around 1% in the first few minutes. The banks, as usual of late, or have been sold with the financial sector down 1.47%. Same for resources which are down more than 1% but utilities are off 2%. Local shares slide on the open to continue recent downward pressure. #ASX 200 -55pts or 0.95% to 5840 despite a rebound for Wall St on Friday. All sectors bar healthcare are in the red #ausbiz#ASX200 deeply oversold. We should acquire back to at least 6102/6140 by early next week before a retest of Friday's low kicks off. 12.15am BSTMore commentary on the Australian market from Michael McCarthy at CMC Markets. His thrust is that this week sees a lot of data from China including lending,retail sales and GDP which should give us a picture of where the superpower is heading, ie is it in good enough shape to outlive a trade-war inspired downturn? There’s also inflation and trade data from Japan, or retail sales in the UK and in the US,retail sales, housing numbers and Fed minutes.
Here’s what Michael says: Australian investors face a challenge at this morning’s opening. Despite positive moves for US shares and buoyant industrial commodities SPI futures were belted at the New York close, and suffering a 51 point loss for the session. The first hour of trading may indicate whether this was an error or the beginning of further underperformance for Australian shares. 12.07am BSTGreg McKenna,the independent market strategist, says the markets narrative has been hijacked by the Saudi pushback and Brexit but reckons it’s a close call on what direction things will take.
This is what he says in his morning note:Much water to flow here particularly for the Pound and oil prices. Looking back to Friday though and while stocks in the US rallied into the close it was a messy day and hardly a convincing bounce. Is it the bottom? Many believe so and the medium-term charts recovered to hold channel bottoms. But we’ll see. 12.04am BSTGood morning and welcome to the Guardian business live blog.
We’re firing up a bit earlier than usual nowadays because it looks like being an exciting session in Asia Pacific markets. APAC Opening Calls:#ASX 5824 -1.03%#NIKKEI 22523 -0.83%#HSI 25693 -0.29%#NIFTY 10477 +0.09%#CSI300 3161 +0.37%Continue reading...
Source: theguardian.com