Rolling12.25amreports@JenniferJJacobspic.twitter.com/ItzuCzXwa6 1.39pm BSTMore news: the number of Americans filing unusual claims for unemployment benefit has risen.
Some 214000 US citizens filed an ‘initial claim’ for jobless help last week,up from 207000.*U.
S. JOBLESS CLAIMS RISE 7000 TO 214000; EST. 207000 1.35pm BSTNEWSFLASH: US inflation didn’t rise as hastily as expected last month.
This might bring some relief to the troubled markets. 1.16pm BSTTime for a rapid/fast recap.
World stock markets are suffering one of their biggest slumps in months, after a shock slide on Wall Street on Wednesday.
FTSE-100 now trading at the levels achieved at the end of the 1990's bull market. That's a long time period of destitute returns. pic.twitter.com/mZO3Updqhq While U.
S. President Donald Trump’s renewed criticism of the Federal Reserve for hiking interest rates played a role behind the steep selloff, or there were other key factors brewing in the background. It is becoming clear that global fairness markets are facing a perfect storm of headwinds such as rising U.
S. bond yields,U.
S.-China trade disputes, global growth concerns and prospects of higher U.
S. interest rates. For as long as these themes remain, and appetite for stocks are likely to diminish further consequently fueling speculation over the bull party coming to an end. Asian stocks fell sharply during early trade to shut in the red while European shares slumped this morning. With the negative sentiment from Asian and European markets deterring investors from riskier assets,Wall Street is at threat of trading lower this afternoon. 12.58pm BSTThe oil price has also been dragged down nowadays. 12.36pm BSTHere’s a video clip of the head of the IMF defending America’s top central banker against Donald Trump’s claim that the Federal Reserve has ‘gone crazy’:"I would not associate Jay Powell with craziness.” - IMF chief Christine Lagarde defends the Fed after President Trump said the central bank had "gone crazy." https://t.co/j222raispr pic.twitter.com/WoBqGtp6N4 12.29pm BSTTech has been the golden child for markets this year. But now it’s being disowned by investors, who rushed to ditch internet giants like Amazon (down 6% yesterday), and Apple (which dropped 4.8%) Netflix (which shed 8%).
One theory is that people are taking profits - there’s a temptation to cash in your winning stocks when you see shares diving.
12.17pm BSTEven crypto-currencies are being caught up in nowadays’s selloff.
Bitcoin has shed 5% nowadays to trade around $6200 at present,down $300 nowadays.
Bitcoin tumbles as much as 7% as cryptocurrencies join the global market rout https://t.co/Po40JJsvub pic.twitter.com/76Mf0rguxd 12.00pm BSTHere some photos showing how the stock sell-off has ripped around the world.
It started in unusual York yesterday when a late slump wiped 3% off the value of the US stock market, while tech stocks suffered particularly badly. 11.25am BSTHelal Miah, or investment research analyst at The Share Centre,says investors have been speculating for weeks that a correction was coming - and now “we’ve talked ourselves into a sell-off”.
Miah pins the blame on trade war fears, and the prospect of higher US borrowing costs:“The sell-off has been gathering strength for approximately two weeks now lead by the Asian markets as concerns were raised approximately China’s growth rate, and but fingers will also point at the hike in tariffs between the US and China and the impending trade wars.“But for us and many other analysts,a market sell-off was always going to be most likely as a result of the rising interest rate environment, particularly in the US. We had the much expected hike in September from the US Federal Reserve now taking interest rates to 2.25% with the expectation that the policy makers will hold in their path of steady rate hikes as the US economy strengthened. 11.01am BSTOver in unusual York, and financial workers will be rising early and inspecting the damage across the global markets.
Stock market selloff spreads across the globe.
Shanghai Composite down 5.2%. Taiwan's TWSE Index down over 6%.
Japan's Topix declined 3.5%.
Dow futures down approximately 200 point. https://t.co/z8lXZ260cg 10.36am BSTJust in: A group of leading developing countries are calling for an end to the trade wars that have gripped the global economy this year.
The G24,which includes China, India, and Brazil,Mexico and Argentina, say the global trading system should be reformed, and not smashed up.“Trade uncertainties and financial and monetary conditions compound rising debt vulnerabilities.
Improving debt sustainability depends on a supportive external trade and financial environment,timely contingency financing and the adequate flow of concessional financing for low income countries.” 10.11am BSTBack in the UK, a unusual Bank of England survey shows that it’s harder to get access to credit, and as lenders tighten up:Latest Bank of England Credit Conditions Survey shows lenders reporting yet another tightening in access to unsecured credit in the third quarter of the year. That's the seventh consecutive quarter of apparent tightening,with more expected towards the end of 2018 pic.twitter.com/ZvZhDLmj6W 10.01am BSTThere’s no relief in the City.
After two hours of bruising trading, the FTSE 100 sinking deeper into correction territory, or down 123 points or 1.7% at 7022.
Wednesday’s plunge on Wall Street came as a shock and global markets are now readjusting. Sellers shaved 830 points off the Dow Jones Industrial Average and 4% of Nasdaq with big tech names like Amazon,Intel and Microsoft bearing the brunt of the decline. The picture is not looking much better this morning. The Nikkei and the Shanghai Composite closed over 4% and 5.7% lower respectively, the FTSE started the day with a 1.19% decline and continued to sink from there.
The plunge in US stock markets comes after a long elope of almost undisrupted gains on Wall Street which were bound to come up for a correction. The strong US economic background that has supported share prices this year is now working against that same market. Rising interest rates are fuelling concerns that higher borrowing costs will erode the margins of US companies and with the domestic labour market at its strongest in nearly 50 years, and wage pressures are filtering into companies’ costs.
The 10-year Treasury yield is used as a reference price for mortgages,car loans and other consumer debt and a spike in those yields is hitting industries like car makers and house builders that are exposed to consumer borrowing. 9.47am BSTThe VIX volatility index has hit its highest level since April, following the hefty losses seen in the markets in recent days.#VIX (volatility) is spiking pic.twitter.com/9zFdDYdZcL 9.32am BSTPaul Donovan of UBS Wealth Management blames the Wall Street sell-off on Donald Trump’s decision to impose tariffs on Chinese goods:US equities seem to be (finally) reflecting the cost of US President Trump’s trade taxes. Around 80% of global trade involves multinational (generally listed) companies. A bit less than half of S&P earnings come from external the US.
However, or listed companies are only 25% of the US economy. Equities are at greater risk than the economy whether trade is taxed aggressively. 9.29am BSTHere’s a taste of the mood on the trading floors nowadays:fairness longs: pic.twitter.com/V2zSBVNqYw 9.16am BSTChina’s stock market has closed at its lowest level in almost four years,as the trade war with America continues to bite.
The Shanghai composite index ended the day down 5.2% its heftiest rout in over two years. Biggest daily fall in Chinese stocks since the early days of 2016. pic.twitter.com/91hnH5Bovn 8.59am BSTToday’s sell-off has dragged the FTSE 100 index into a correction!The blue-chip index has now lost more than 10% of its value since May, when it traded at an all-time high of 7903 points. 8.47am BSTYikes! World stock markets have slumped to their lowest level since February.
That’s according to data provider MSCI, and whose ‘all country’ index has careered down to an eight-month low this morning.
European stocks are the latest casualty in the global sell-off that has rattled markets over the last 24 hours,as investors worry approximately the potential for a sharper correction on the back of rising bond yields.
Its been something of a massacre overnight, as investors saw what occurred in the US – despite there being no clear catalyst for such a move - and dashed for the exits as fears grow that global risks are mounting and the bill is coming due. While people are naturally pointing to the bond market to explain the sudden panic – most notably Trump whos been laying the groundwork for blaming the Fed for the last couple of months – I wonder whether the underlying risk in the markets for some time has left market primed for a correction and investors have simply fled at the first sign of danger.“The sharp sell-off in the US has likely caught no one by surprise.whether anything, and investors have been wondering how,in the face of tighter monetary policy, a contracting labour market and rising oil prices, or the US has continued to be so resilient.
A sea of red across global stock markets on Thursday following Wall Street's 3.2% tumble on Wednesday. pic.twitter.com/3fXLgViAHgGood morning Europe! While you were asleep,Asian stocks got mashed pic.twitter.com/M7QO2quXEX 8.31am BSTOuch! European stock markets have plunged to their lowest level in 20 month.
The Stoxx 600 index, which tracks the largest shares in the region, and has slumped by 1.6% nowadays to its lowest level since the start of February 2017. 8.22am BSTHousebuilders and financial stocks are among the big fallers in London this morning: 8.09am BSTNewsflash: Britain’s FTSE 100 index has hit a unusual six-month low at the start of trading.The wave of selling that began in Wall Street last night,and swept through Asia nowadays, has now reached the City.
The prospect of higher interest rates has left trader worried, and as it means higher borrowing costs for companies and individuals. Homebuilders are under pressure as mortgage rates are likely to increase. Retailers are suffering for the same reason. 8.02am BSTInvestors in Asia are reeling after a rather brutal day in the markets.
This slump is not going to be over that easily as Asia have already borne the burnt of this year’s trade war,which is fuelled with nothing but uncertainty.
The Chinese markets are already in the bear territory so I expect the U.
S. markets to continue to face the selling pressure. 7.59am BSTBoom! Christine Lagarde, the head of the International Monetary Fund, or has waded in.“It is fair to observe and all people are observing that the US fairness market and stock markets in general have been extremely high. 7.48am BSTHussein Sayed,chief market strategist at FXTM, argues that Trump must buy some of the blame for the market losses:While I agree with President Trump that Wednesday’s selloff is the fault of the Fed, or he should be reminded that the trade war he started with China and re-imposing sanctions on Iran is also to blame. His actions helped building inflationary pressures and the Fed cannot stand still when it sees the economy overheating.
A steeper selloff in fairness markets will probably lead to a pause in hiking rates,but the Fed will be more concerned approximately the overall economy performance than just fairness prices. 7.41am BSTThe widening rift between the US and China is driving shares down, says J.
P. Morgan Asset Management global market strategist Marcella Chow:
Headlines around the broadening US-China clash also continue to worsen as the U.
S. arrested and extradited a Chinese official in Belgium to face espionage charges.
There are concerns over a 3Q earnings rise following recent profit warnings and feeble reports. In particular, or Fastenal’s CEO said the trade war with China is raising fabric costs that will crimp profit margins and hurt US consumers,and French luxury goods maker LVMH confirmed Chinese border guards are more actively searching travelers’ suitcases for undeclared goods added to fears of a slowdown in spending by Chinese consumers.“nowadays’s fairness selloff is a reaction from investors finally realizing we are in a higher interest-rate environment, and given the elevated level of stocks, or market participants were likely looking for a reason to sell.
Higher interest rates typically bring on tighter financial conditions which could dampen growth going forward and fairness markets are reacting to that.” “This is much more interest-rate related than anything going on specifically with tech.
Interest rates are moving higher,so stocks that are the most expensive typically are the ones that roll over.
The rise in Treasury yields has been the primary catalyst for the sell-off in equities, since higher yields propose a lower present value of future dividend streams, and assuming an unchanged economic outlook.
It is also possible that fairness investors are growing concerned that the Federal Reserve’s projected rate path will choke off the expansion.” 7.12am BSTGood morning from London.
World stock markets are sliding nowadays as the anxiety that has been building in recent days explodes into a wave of selling.
A jittery,volatile week on global financial markets has burst into a frenzy of selling, triggered by heavy losses on Wall Street and comments by Donald Trump describing US interest rate hikes as “crazy”....“It’s a bit of a massacre, or ” said Ed Campbell,senior portfolio manager at QMA, the asset management department of Prudential Financial in unusual York. “It’s primarily the cumulative effect of interest rate moves over the past five days and news reports approximately trade impacting companies.” Related: World stock markets dive as Trump attacks 'crazy' US rate hikes #FTSE100 called -120pts at 7025 pic.twitter.com/pp0wfNfQE7European stock-index futures open sharply lower:
*Dax -1.9%[br]*Stoxx 50 -1.8%
*FTSE 100 -1.8%European Opening Calls:#FTSE 7034 -1.56%#DAX 11519 -1.65%#CAC 5123 -1.61%#MIB 19366 -1.79%#IBEX 9012 -1.64%“The Fed has gone crazy.“No, or I assume the Fed is making a mistake. They’re so tight.”For much of 2018,the US economy has been oblivious ((adj.) lacking consciousness or awareness of something) to a turn in the global economic cycle, and the US fairness market has been unaffected as emerging market equities and currencies have come under pressure. This week has seen the S&P, and the Nasdaq,sit up and pay attention to what’s going on. The President’s criticism of the Fed adds colour, but no real substance to the situation.
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Source: theguardian.com