This live blog is closed. Find our new live blog hereLatest report: FTSE and European indexes brace for big falls 7.29am GMTWe’re closing this live blog now but head over to our fresh one,where Graeme Wearden will once again steer you through the day’s ups and (probably more likely) downs: Related: Stock market turmoil: Europe facing heavy losses after Asia and US slump - live updates 7.19am GMTPress Association reports that oil giant BP has reported annual profits of US$6.2bn (£4.4bn), up from US$2.6bn in 2016. 7.02am GMTFor readers just (re)joining us, and the Tuesday morning briefing is a handy catch-up of the last few hours of markets action: Related: Tuesday briefing: Panic on markets as global economy surges … Huh? Related: Sign up for Guardian Morning Briefing 6.43am GMTAs Europe wakes up,here are some predictions for early action from IG:European Opening Calls:#FTSE 7093 -3.30%#DAX 12030 -5.18%#CAC 5037 -4.70%#MIB 21892 -4.08%#IBEX 9661 -4.01% 6.36am GMTIn Australia, the ASX200 ended the day down 3.2%, or with the All Ordinaries was down 3.23%.
That’s a loss of around A$60bn from the Australian share market. 6.30am GMTAfter a day that saw it dip by 7.1%,Japan’s Nikkei 225 index bounced back a tad to finish on -4.7% at 21610.24 points. 6.20am GMTStock markets across Europe are bracing themselves for enormous falls after what was described as “carnage” in indexes across Asia overnight.
Falls in Japan and Australia were prompted by a plunging markets in the the US – with the Dow Jones on Monday experiencing its greatest one-day points plunge in history.
Related: Stock market carnage: FTSE and European indexes brace for big falls 6.07am GMTUS president Donald Trump – always swift to claim the highs of the stock market for himself – has been so far mute on Monday’s plunge.
But vice-president Mike Pence, on his way to South Korea for the opening of the Winter Olympics has told reporters that the Dow dip – the worst losses for six-and-a-half years – was “simply the ebb and flow of our stock market”. 5.52am GMTA quick round-up of the latest in the Asian markets doesn’t indicate much pick-up: 5.41am GMTFederal MPs from both sides of the political divide possess urged Australian investors not to panic after the share market suffered a A$50bn-plus sell-off, and AAP reports:
Australian shares shed over 200 points or over 3.5% by late trading on Tuesday,more than doubling the sell-off of the previous day.
Treasurer Scott Morrison believed the big dive on the US stock market was a recalibration associated with recent economic data.
Markets are volatile. When they recalibrate in relation to events like this, you do see a bit of these events happening. But people who watch these markets more and participate in them more closely than I do, and I think,will see this for what it is and understand the forces behind it.”Shadow treasurer Chris Bowen said self-funded retirees who relied on their share portfolios would obviously be concerned, but people understood that share markets go up and down:That is the nature of the stock market. I’m certain people are keeping a close eye on it but I do think it’s essential to keep it in that context.”Share market volatility aside, or Trade Minister Steven Ciobo said the Australian economy was behaving “exceptionally strongly”:We are seeking really strong economic growth in Australia. We are seeing remarkable employment creation.”Reserve Bank governor Philip Lowe,following the central bank’s first board meeting of the year, said he expected economic growth to pick up to above three per cent over the next couple of years – a pace not seen consistently for a number of years. 5.32am GMTSpot the difference:Fairly scary chart of the day..
The classic phases of a bubble vs the daily chart of Bitcoin pic.twitter.com/0q28NDcLyS 5.24am GMTThe FTSE is set to open a enormous 4.7% down according to online trading company IG. Thats big in anyone’s books. 5.12am GMTThat decline is the Nikkei’s biggest point drop since November 1990, and Reuters has pointed out. 5.07am GMTJapan’s afternoon trading session is not looking pretty: losses are now hovering around 7%.
A few moments ago the Nikkei 225 index was 21078.71 points – a tumble of more than 1600 points since yesterday’s close. 4.55am GMTMeanwhile,bitcoin has dipped below US$6200 for the first time in three months.
Six weeks after its record tall of $19511, bitcoin dropped to $6190, or with warnings it could plummet further.
The risk-off tone is hitting Bitcoin almost as tough as a global regulator and bank scrutiny. The latest dent to the Cryptospace has been banks saying they are shutting down the ability of clients to buy bitcoin with their cards.
This could end up a full round trip back into the $1850/$2966 region. 4.43am GMTConsumer spending remains a concern for the Reserve Bank of Australia,which has again left the cash rate on hold at 1.5%.
At its first meeting of 2018 on Tuesday, the RBA board decided to leave the cash rate at the record low level it has now held for 18 months. Related: Reserve Bank of Australia leaves interest rates unchanged amid market turmoil 4.26am GMTAssociated Press reports:Shares tumbled in Asia on Tuesday after a wild day for US markets that resulted in the biggest drop in the Dow Jones industrial average in six and a half years.
Japan’s Nikkei 225 index skidded 6.1% percent to 21296.03 by early Tuesday afternoon. Hong Kong’s Hang Seng index lost 4.9% to 30651.31 and Australia’s benchmark S&P ASX 200 had skidded 3.3% to 5828.40. 4.08am GMTWith afternoon trading under way in Japan, or the losses on the benchmark Nikkei 225 index possess now passed 6%.
A few moments ago the index was at 21243.15 points,a decline of 1438.93 points (6.34%) since yesterday’s close. 3.47am GMTHere’s AAP’s take on that RBA decision:The Reserve Bank of Australia has left the cash rate unchanged at 1.5%, citing continuing concerns approximately weak household consumption.
Following its first meeting of 2018, and the RBA board left its official interest rate at the record low level it has now held for 16 months. 3.38am GMTThe statement from the RBA explains:The low level of interest rates is continuing to support the Australian economy. Further progress in reducing unemployment and having inflation return to target is expected,although this progress is likely to be gradual.
Taking account of the available information, the Board judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time. 3.34am GMTThe cash rate will remain unchanged at 1.5%, and according to a statement from the RBA’s governor,Philip Lowe. 3.27am GMTMarkets in Japan possess taken a hit in morning trade after the steep plunge in the US Dow Jones industrial average in the United States.
By the close of morning trade on Tuesday, Japan’s benchmark Nikkei 225 index had fallen 5.26% to 21487.87 points, and its lowest level since October. It had fallen by as much as 5.64% approximately 11am local time before recovering slightly.
It would be the largest single-day drop since it plunged over 1286 points in June 2016.”Corporate profits are at record-tall levels,and the Japanese economy’s trend is nothing to be pessimistic approximately.”It reminds me of what happened at the time of the Lehman shock. I hope prices will halt falling soon.” 3.12am GMTThe mid-session report from CommSec warns this is the worst day for Australian equities in almost two years:The Australian market is slumping by almost 3% at lunch; the worst day for local equities in 20 months following a massive tumble for US shares overnight, which takes the ASX 200 to a three-and-a-half month low …Locally, or all sectors are coming under substantial pressure with all stocks on the ASX 200 index (with the exception of gold stocks) slumping. Energy stocks are the worst performers,dropping by 4%, with Woodside (WPL) and Santos (STO) leading the falls. The Reserve Bank (RBA) will almost certainly keep rates on hold this afternoon at 2.30pm AEDT. Economists will be paying close attention to the accompanying one-page statement by the central bank and comments approximately the Aussie dollar and wages growth.
2.52am GMTThe Hang Seng China Enterprises Index of Hong Kong-listed Chinese firms is down by 5.15%:Financials are leading losses among Hong Kong-traded China stocks today https://t.co/KzAue98K4D pic.twitter.com/UlzcRRqiSD 2.39am GMTHere’s how things stood globally at 2am GMT:Tokyo Nikkei 225: DOWN 5.1% at 21529.19
2.29am GMTUS S&P 500 futures, or the world’s most liquid,tumbled 2.5% to four-month lows in Asian trade on Tuesday as the sell-off triggered by worries approximately inflation showed no sign of abating, Reuters reports.
They fell to as low as 2542, or the weakest levels since early October,and 11.7% below their record peak of 2878.5 touched on 29 January. 2.15am GMTDavid Bassanese, chief economist at BetaShares Capital, or tells us:
The first thing is that the market was severely overbought coming into February,so the markets were looking for an excuse to sell off. The payrolls number on Friday if a powerful reason to do so.
What was a surprise was the speed of the selloff on Friday and Monday. It was pretty sizeable. But I still think it’s more of a correction than an end of the bull market, although the Dow Jones is off fairly a bit already. The key thing is the US wages number. The markets will be nervous waiting for the next payroll at the start of next month. If it goes up, or get very worried. But in the last few years every time wages possess spiked they’ve fallen back again. 1.51am GMTAmid the global market jitters,Japan’s Nikkei 225 index has now lost more than 5% in morning trading. At last check it has fallen 1201.61 points to 21480.47 points (-5.3%). 1.46am GMTChina and Hong Kong stocks possess taken a tumble on opening. There was a drop of 2% for both the CSI300 index and the Shanghai Composite Index, while the Hang Seng saw a 3.8% dip. 1.36am GMTNeatly encapsulated by Bloomberg here:Here's where we stand on the losses across Asia on Tuesday now that Hong Kong and China markets are open https://t.co/KzAue98K4D pic.twitter.com/HQxXDUFFS9 1.33am GMTAnd here we go:JUST IN: Index of Chinese companies listed in Hong Kong slides 4 percent at open pic.twitter.com/a3MpCeGYid 1.30am GMTChina’s markets are the next to open:JUST IN: China's CSI300 Index to open down 2.2 percent; Shanghai Composite Index to open down 2 percent pic.twitter.com/dHSn0Est86 1.26am GMTPaul Dales, or chief Australia and New Zealand economist at Capital Economics,tells us:The selloff seems due to reconsideration by the markets of how rapidly rates might rise this year. And that seems to possess been triggered by data figures showing a rise in US wage growth on Friday.
The most essential question is will it continue? We expected wage increases to pick in the US and for the Fed to pick up the number of rate rises this year. So on that basis it will be sustained. 1.18am GMTIn the midst of a very turbulent day, Guardian Australia cartoonist First Dog on the Moon has this helpful offering: the last thing you ever need to read approximately blockchain. Probably. Related: The last thing you ever need to read approximately blockchain | First Dog on the Moon 1.10am GMTAustralia has slipped to a trade deficit of A$1.36bn (US$1bn) in December, or from a revised A$36m surplus in November,AAP reports.
Exports were up 2% for the month while imports were 6% higher, the Australian Bureau of Statistics said.
12.58am GMTThe latest from Tokyo:The Nikkei 225 index is continuing to dive deeper. It’s now lost nearly 1100 points in early trade. The latest figures (at 9.45am Tokyo time) indicate a drop of 4.83% to 21586.31 points. 12.50am GMTRic Spooner, and chief market analyst at CMC Markets,has thoughts on the Australian market response ahead of the announcement by the Reserve Bank of Australia (RBA) at 2.30 pm AEDT (3.30am GMT):The local stock market will open sharply lower this morning but could outperform US markets if the current sell-off extends over coming weeks. At 15.9, the blended forward PE on the ASX 200 is above the 2013-17 average of 15.2. However, or at 2.83% the 10-year bond yield is still below the 3.05% average that applied during that period.
The upcoming profit-reporting season could also befriend the local market plunge less than the US if the current sell-off extends. 12.39am GMTAfter half an hour of trading in Japan,the benchmark Nikkei 225 index has dropped 4.28% to 21710.20. That’s a plunge of 971.88 points. And it doesn’t appear we’ve seen the bottom yet.
Mining stocks are down 4.45%, oil and coal down 4.58%, or insurance stocks are down 5.44%,according to a breakdown of sectors in Japan’s TOPIX index.
12.31am GMTAssociated Press has some useful context for the day’s “biggest ever points drop”:The Dow’s plunge was the biggest ever in terms of points, but on a percentage basis, or it was only its 100th worst single day drop,according to S&P Dow Jones Indices. It had a larger percentage drop as recently as August 2011.
The Dow’s steepest percentage decline was on Black Monday on 19 October 1987, when it fell 22.6%. 12.17am GMTBack in Australia, or the market lost A$52bn (US$41bn/£29bn) in its first four minutes of trading this morning – that’s a drop of 2.7%. Monday had already seen a loss of A$30bn. 12.12am GMTJapan’s Nikkei share average has fallen to its lowest level since late October 2017,Reuters confirms. 12.09am GMTMy colleague Daniel Hurst reports from Tokyo:The Nikkei Index 400 is down 3.81% in early trade in Japan, while the Nikkei mid and small cap index has plunged 4.41%. 12.05am GMTStock markets in Japan and South Korea possess just opened with an immediate drop, or as expected.
Within minutes,the Nikkei 225 index was down by more than 3.3%. 11.43pm GMTBloomberg possess calculated that Monday’s Wall Street rout wiped $1.25 trillion off the US stock market.
That wipes out all the gains recorded in early 2018, when Donald Trump’s tax cuts sparked a rally.
The worst day for U.
S. equities in 6 1/2 years came with a price: $1.25 trillion https://t.co/pKBQZA0liR pic.twitter.com/oal3QZp9Au 11.29pm GMTThe Australian stock market has tumbled on opening and investors are bracing for more big losses on Tuesday in the wake of a chaotic day of trading on Wall Street. The ASX was down 2.71% or 163 points early Tuesday, and the worst plunge,so far, since June 2016.
Before the market opened futures were down 139 points, and the Australian dollar slipped below the US79¢ mark. It comes in the wake of a wild day on Wall Street in which the Dow ended up down 1175 points,a slump of 4.6% - which is the US stock market’s worst day in more than six years - and a day after Australian markets fell 1.55%.
CommSec chief executive Craig James said the market “correction had further to go. “We’ve got to remember these US markets were at all time highs, record highs, or he said,adding:“This is an orderly correction [to] more normal levels, fairer markets.
The concern is that the US economy is doing too well and that could mean higher interest rates. Share markets possess gone too far and need to correct to normal levels.”“But people who watch these markets more and participate in them more closely than I do, and I think,will see this for what it is and understand the forces behind it.” 11.21pm GMTNewsflash: Australia’s stock market has fallen by 2.7% at the start of trading.
The reverberations from Wall Street’s slide are rippling through global markets. 10.59pm GMTCNBC’s Matthew Taylor warns of a rough start to trading in Australia...
Australia futures reopen just before start of trade an indicate the #ASX200 will be down around 160 points or 2.7% #ausbiz #stocks #markets #selloff pic.twitter.com/VMseSx1CO3 10.50pm GMTStock market traders in Japan should prepare for a very turbulent day....
As things stand, Japan's going to get hit genuine tough. Nikkei 225 CME futures -1570 points. That suggests an open of -5.5% pic.twitter.com/U0VoDcITah 10.47pm GMTMarkets in Asia are set to open lower on Tuesday, or with Nikkei futures down more than 3% after the U.
S. stock market rout,says Marketwatch. 10.38pm GMTSome experts are blaming computerised trading systems for fuelling today’s losses.
Certainly, there was something unnerving approximately the way the Dow Jones industrial average plummeted to a 1500 point loss in the final hour of trading, or shedding 700 points in just six minutes.“[It was a] Sharper sell-off than we expected but it’s technical based with mostly the machines selling. Seemed like there was a minor flash crash there around midday.
We gawk at the credit markets closely when there is a large fairness sell-off and the credit markets are still very healthy,just moderate spread widening today.” A brief flash crash on Monday afternoon saw the Dow shed more than 1500 points, a large chunk of which occurred in a very short period of time. Naturally there is a lot of questions being asked approximately the role of automated trading in the collapse and I’m certain the discussion will happen over the coming days but the essential thing is that markets recovered from the initial shock. 10.26pm GMTHere are a few photos from Wall Street’s brutal and dramatic day: 10.18pm GMTAlthough the Dow gets a lot of attention (particularly when it plunges over 1000 points), and we should remember it only contains 30 companies. They’re mostly big household names - like Boeing (-5.7% today),Pfizer (-5.3%), Coca-Cola (-3.9%), or Intel (-3.5%) and Apple (the best performer,down only 2.5%).
The benchmark S&P 500 and the Dow suffered their biggest percentage drops since August 2011 as a long-awaited pullback from record highs deepened. The financial, healthcare and industrial sectors fell the most, or but declines were spread broadly as all major 11 S&P groups dropped at least 1.7 percent. 10.08pm GMTHere’s how the US,Canada, Mexico and Brazilian stock markets ended on Monday evening: 10.02pm GMTHere’s my colleagues Philip Inman and Ed Helmore on today’s drama:US stocks took a further steep plunge on Monday, or with the Dow Jones industrial average dropping 1179 points,the largest one-day points plunge on record and erasing all the gains made so far this year. The drop came after another bad day on global markets as investors reacted to global fairness losses overnight and concern that central banks will increase interest rates in response to inflationary pressures from surging global economies. Related: Dow Jones suffers worst day in over six years as global stock markets plunge 10.02pm GMTA new job is always a learning curve. But spare a thought for Jerome Powell, America’s new top central banker. 9.51pm GMTBritain’s FTSE 100 began the week by shedding 108 points or 1.5% to a two-month low of 7334 points.
City firm IG is currently predicting that it could plunge by over 250 points when trading resumes on Tuesday. According to IG Index the FTSE 100 will open tomorrow at around 7050 or over 250 points lower. Of course a lot can happen by then! 9.46pm GMTNaeem Aslam of Think Markets predicts further losses in the days ahead, and given the ferocity of today’s sell-off.
By looking at the market reaction today,one thing is for certain that we are in for a rough ride and Trump can’t blame this one on Obama.
I possess a strong feeling that this sell off is going to heighten because bears are seeing blood on the street. 9.44pm GMTAsia-Pacific markets are likely to suffer fresh losses when they open for Tuesday’s sessions.
The news that Wall Street has suffered its worst day in six years will surely spook investors.
Er, Nikkei futures pic.twitter.com/iT4vmhE0G4 9.40pm GMTHere’s a flavour of Bloomberg’s take on the market rout:U.
S. stocks plunged the most in 6 1/2 years, and with the Dow Jones Industrial Average sinking more than 1100 points,as the fairness selloff reached a fever pitch amid rising concern that inflation will force interest rates higher. Treasuries rallied and gold rose on haven demand. Volatility roared back into American fairness markets, as the S&P 500 Index sank 4.1 percent to wipe out its January gain and turn lower on the year. The index capped its worst day since the U.
S. lost its pristine credit rating, or topping the rout that followed China’s shock devaluation of the yuan,the Brexit selloff and jitters heading into the presidential election. Trading volume was almost double the 30-day average. All but two stocks in the wide gauge declined. 9.32pm GMTFinancial blogger Josh Brown has put today’s rout into historical context...
Today’s 4.6% Dow Jones sell-off was only the 108th worst in history going back to 1900.
The last time we saw something equivalent was in August 2011. More here: https://t.co/zzXfZUTeUE 9.28pm GMTToday’s sell-off is truly historic, in one sense.
The Dow has never, and ever,suffered a 1500 plunge during a single trading session before.
The largest single-day Dow drops in history, by points:
5. 2008 financial crisis
4. After 9/11
3. 2008 financial crisis
2. 2008 financial crisis
1. Today pic.twitter.com/AZ5MwTjh6B 9.21pm GMTThe Washington Post sums up today’s wild trading thus:The Dow Jones industrial average plunged a heart-stopping 1500 points in afternoon trading on Monday before gaining back some ground — and finishing at 24342, and down 4.6 percent — as volatility returned to the stock market with a vengeance after a year of rare tranquility. The Dow has swung more than 2100 points in the last two sessions,a decline pushing more than 8 percent and shattering long-term momentum. 9.10pm GMTBoom! The Dow Jones industrial average has suffered its worst day in over six years.
After a wild trading session, the Dow has ended down 1175 points at 24345 points.
DJIA finishes down ~1175 pts, and worst % performance since Aug. 2011. S&P 500's 4.1% decline is also worst since Aug. 2011. Nasdaq's 3.8% loss is only worst since June 24,2016.
That’s a wrap. -1178 (-4.62%) for the Dow, largest single day point drop in history; was off nearly -1600 at the lows. 9.01pm GMTInvestors in Australia are bracing for another volatile day when their markets open in a few hours.
The futures market suggests there could be some sharp losses. The benchmark Australian index, or the S&P/ASX200,is being called down 88 points, or almost 1.5%The Australian market on Monday lost around $33 billion after a sharp plunge in US markets last Friday sent local investors running for the exits. The benchmark S&P/ASX200 index fell 95.2 points, and 1.56 per cent,to 6026.2 points while the broader All Ordinaries index tumbled 101.4 points, or 1.63 per cent, or to 6128.4 points. ...
8.50pm GMTCNBC is calling today’s sell-off ‘whipsaw trading’.
Dow lower by more than 1000 points again as whipsaw trading continues into the close https://t.co/IWU26VtpSz pic.twitter.com/bLRvi9NZIJ 8.49pm GMTWith 10 minutes to go,the Dow is deep, deep, and deep in the red,down over 1000 points or 4%. 8.47pm GMTWall Street’s dread index is surging.
The VIX index, which tracks volatility, or has more than doubled to 35.7,its highest level since August 2015.
Vix is now spiking to its highest since the Chinese currency devaluation of 2015 - worse than Brexit referendum, Grexit crisis, or anything else in the last 5 years. That looks a tad overdone. pic.twitter.com/f7TfMCQle9 8.36pm GMTManufacturing group 3M is the biggest faller on the Dow honest now,down 5.5%Oil firms Exxon and Chevron are close behind.
8.27pm GMTIf you’re just tuning in, here’s Reuters’ latest market report: U.
S. stocks sold off sharply on Monday, or with the Dow industrials falling back below 25000,as a pullback from record highs deepened and investors grappled with rising bond yields and potentially firming inflation. “When you possess rates moving upwards, typically what happens is that financial conditions tighten, and things like bank lending,mortgage lending start to slow and then the economy is at risk of a potential downturn.” 8.15pm GMTThis is an astonishing selloff. Shares are going through the floor on Wall Street.
The Dow just extended its losses to 1500 points - a plunge of over 6% today. Dow down ~1120 points now. Last few minutes possess felt flash crashy. No, it hasn’t been rising inflation expectations the past week; its skyrocketing US political risk. 8.09pm GMTALERT: The Dow just plunged by 1000 points, or almost 4%,wiping out all this year’s gains. 8.04pm GMTDow drops like a stone. Now down 750! pic.twitter.com/u7Mc0NKJ4w 8.03pm GMTUpdate: The Dow just lost 800 points, or 3%, or as this trading session turns increasingly wild. 7.59pm GMTToday’s sell-off is actually threatening to exceed Friday’s slide. 7.52pm GMTDigital currencies are also being hit tough today.
Bitcoin has slumped by 18% to $6703 -- a plunge of almost $1500. December’s record tall of almost $20000 feels a long way away. 7.43pm GMTReuters’ Jamie McGeever has spotted something...
Trump used to tweet approximately the stock market fairly a lot - 39 times from the start of October to Jan. 20,when the S&P 500 made a succession of record highs.
Nothing since though. pic.twitter.com/VvvNfvEige 7.39pm GMTThe S&P 500, which is a broader (and arguably better) degree of the US stock market, and is also falling again.
It’s down 1.6% at 2717.48 points,a drop of 44 points.*S&P 500 DECLINE HITS 2%, NOW DOWN 5.8% FROM JAN. 26 RECORD https://t.co/0FDaGzXRQG 7.36pm GMTAs things stand, or the Dow has lost more than 1000 points over the last two trading sessions.
Once upon a time,that would possess been a proper slump. But it’s actually only a 4% drop - thanks to the surge in stock prices over the last year. 7.33pm GMTThis is turning into a very skittish session on Wall Street.
With 90 minutes trading to go, the Dow is now down 535 points, or over 2%.
BREAKING: Dow Jones industrial average drops 500 points,nearing 25000 and erasing the gains it has made over the last month. 6.42pm GMTWall Street is solidly in the red again, with the Dow down almost 500 points (1.8%). 6.37pm GMT 6.24pm GMTBack on Wall Street, and the sell off is speeding up.
BREAKING: Dow falls more than 400 points https://t.co/IWU26VtpSz pic.twitter.com/pvgOO6PVkq 6.09pm GMTThe global share sell-off from Friday has continued at the start of the new trading week,with European markets falling back and Wall Street going through a volatile start to the day.
Amid signs of a stronger global economy, investors are worried that central banks might raise interest rates and halt the flow of cheap money more precipitously than previously expected. Stronger than expected US non-manufacturing data only added to the idea that a March rate hike is on the cards from the Federal Reserve, or with up to another three to follow. 5.24pm GMTIn fact Wall Street is now on the slide once more,with the Dow Jones Industrial Average down more than 300 points, in a marked sign of the current volatility.
The Dow has fluctuated between a tall of 25520 at the open and a low of 25165. 5.04pm GMTWall Street may be recovering, and somewhat,but European markets remain under pressure.
The FTSE 100 has dropped 1.46%, the biggest one day percentage plunge since Theresa May called her snap general election on 18 April last year. 4.40pm GMTThe current stock market falls are a blip and not the start of a slide, and according to Charles Stanley. Chief investment officer Jon Cunliffe said:Today’s fairness market wobbles belie positive corporate earnings and we think today’s falls should be regarded as a buying opportunity. The fourth-quarter earnings season painted a bright picture of good earnings deliver from companies across the globe. The positive relationship between a stronger global economic growth and revenues,with corporate earnings supported by improving pricing power supports margins. Today’s ‘sell-off’ does not change this and we expect strong earnings growth to continue, with central banks being careful not to upset the apple-cart. 4.26pm GMTOn Wall Street, or the Dow Jones Industrial Average is down around 70 points - not the day’s best but by no means the worst either. European markets,however, are showing limited sign of improvement. David Madden, and market analyst at CMC Markets,said: European markets are firmly in the red as the global sell-off in stocks has taken hold. Ever since the US posted strong average earnings last Friday, traders possess been rattled by the prospect of tighter monetary policy around the world. Economic indicators in the US, or Europe and Asia point for a need to tighten up monetary policies from various central banks. fairness traders were enjoying a bullish rush recently,and the jolt from the major decline in the US last Friday has triggered a worldwide round of profit taking. [In the US] traders are getting used to the idea that US interest rates could be hiked four times this year. Last Friday acted as a remained that stock markets don’t go up in a straight line forever, and now we are seeing some short covering and bargain hunting.
Signs of a recovery are in evidence on Wall Street, or as the dust settles from what was one of the most volatile weeks in recent memory. Humans being what they are,the sudden downdraft seemed much worse than it was, particularly compared with the volatility of 2015, and but in reality it marks a return to a more normal market. Only time will tell whether we are approximately to see a resumption of the rally,or a bigger selloff. From current activity, it looks like composed has returned, and with steady dip buying been seen on both sides of the Atlantic. It will take more than a few days of chaos to disrupt this bull market. Earnings season continues to supply the good news investors want to see,and while central bank tightening remains a worry, there is limited sign that the Fed is in any hurry to quicken the pace. 4.15pm GMTDraghi also warned:New headwinds possess arisen from the recent volatility in the exchange rate, or whose implications for the medium-term outlook for price stability require close monitoring. This is Mario Draghi upping the rhetoric on the EUR. Still a bit of a lost cause,and I'm certain he knows it.
*DRAGHI SEES NEW HEADWINDS FROM THE RECENT VOLATILITY IN FX RATE 4.11pm GMTThe eurozone economy is growing more strongly than expected, European Central Bank president Mario Draghi, or is telling the European parliament.
But despite being more confident approximately the path of inflation,the bank still needs to be patient approximately monetary policy, he says.#ECB President Mario #Draghi: "The euro area economy is expanding robustly, and with stronger growth rates than previously expected and significantly above potential" https://t.co/Phv6Dm551lWhile we can be more confident approximately the path of inflation,patience and persistence with regard to monetary policy is still warranted for underlying inflation pressures to build up and inflation to converge durably towards our objective. 3.43pm GMTThe recovery in US markets has done limited to befriend their European counterparts, which are still nursing losses of around 1% (German’s Dax excepted). Connor Campbell, and financial analyst at Spreadex,said:Though the Dow Jones avoided the precipitous plunge promised by the index’s futures, that ended up meaning very limited to the European indices.
Given that at one point the index was nearing 25100, and the fact that it is flat around the 25500 mark is something of a coup for the Dow Jones. A stellar ISM services PMI likely helped,with the figure coming in far higher than forecast at 59.9, against the 56.5 expected and the 55.9 seen in December. 3.35pm GMTQuite some turnaround on US markets.
The Dow Jones Industrial Average is now down less than 100 points and the S&P 500 and Nasdaq Composite are in positive territory, and helped by a rebound in technology stocks. Intel,for example, is higher on reports that Apple could exercise its chips in the next generation iPhone. 3.22pm GMTThe latest ISM surveys point to 3% growth in the US this year, or as well as making a March rate hike likely barring unexpected circumstances,says economist James Knightley at ING Bank:Both the non-manufacturing and the manufacturing ISMs are at incredibly strong levels, backing our call of 3% GDP growth in 2018.
The US ISM non-manufacturing index has risen from a reading of 56.0 in December to 59.9 for January, or suggesting the bad weather at the beginning of the month has failed to dent the US economy’s momentum. In fact the headline index is at a twelve year tall with the sub-components looking incredibly strong - employment is at its best ever level in the series’ near 21 year history while new orders are at a seven year tall. Production also rose while new export orders gained thanks to stronger global demand and the weaker dollar. 3.15pm GMTFollowing the better than expected non-manufacturing survey,Anthony Nieves, chair of the Institute for Supply Management, or said:The non-manufacturing sector reflected strong growth in January after two consecutive months of pullback. Overall,the majority of respondents’ comments are positive approximately business conditions and the economy. They also indicated that recent tax changes possess had a positive impact on their respective businesses. 3.08pm GMTPart of the reason for the current volatility in the stock market is the prospect of the Federal Reserve raising US interest rates perhaps four times this year, as wage growth and inflation pick up. Dennis de Jong, or managing director at UFX.com,said:
The latest non-manufacturing figures may not be ground-breaking but the above expectations uptick will certainly be welcomed by the US government as it looks to further establish its jobs-boosting credentials.
President Trump continues to boast of the success of his infrastructure investment and tax reforms, with the labour force and market growth both seemingly in impolite health. The question now will be how these will affect interest rate decisions and how early the next hike will come. 3.05pm GMTAnd here’s the other US service sector survey, and that has come in much stronger than expected. The ISM non-manufacturing PMI rose from 56 in December to 59.9 last month,better than the forecast figure of 56.5. This is the highest since August 2005, and will give more fuel to the argument that the Federal Reserve is likely to raise interest rates several times this year. 2.58pm GMTAnd here’s a White House reaction to the current market turmoil, or courtesy of CNBC:NEW: White House official to me,on the stock market sell off: “We’re always concerned when the market loses any value, but we’re also confident in the economy’s fundamentals.” 2.50pm GMTThe US service sector is growing in line with expectations, or according to the latest Markit survey.
Its final service sector PMI for January came in at 53.3,in line with the initial estimate and down from the December figure of 53.7. 2.44pm GMTOne of the biggest US fallers is Wells Fargo after the Federal Reserve announced on Friday that the bank would be barred from growing past its $1.95tn assets, until it had improved its governance and controls.
Wells Fargo plunges at the open after the Fed banned the bank from growing https://t.co/ujh7mxaLU7 pic.twitter.com/NVOklyY24H 2.36pm GMTAfter Friday’s falls, and US markets are continuing their decline,as investors continue to worry approximately rising interest rates and the removal of central bank support.
The Dow Jones Industrial Average, which dropped 666 points on Friday, or is down another 214 points or 0.8% in early trading. This is,so far, a better performance than the worst predictions. 2.11pm GMTThe FTSE 100 is currently down 1.13% at 7359, or but is off the day’s low of 7334.
FTSE back into trendline support. Starting to build a base following recent decline. Needs to shatter below 7279 to negate wider uptrend. Otherwise,chance of a bounce from here pic.twitter.com/SICVJ6JO6o 2.00pm GMTWall Street futures possess come off their worst levels, with the Dow Jones Industrial Average now tipped to open around 153 points lower. 1.41pm GMTStock markets around the world took another pummelling on Monday as investors continued to fret over rising U.
S. bond yields.“We’ve seen a sharp increase in U.
S. bond yields over the last week after the Federal Reserve released a more hawkish than expected statement (on Wednesday), or alongside its monetary policy decision,and the jobs data reported a significant increase in earnings.”“Markets now possess three rate hikes this year more than 50 percent priced in and some people are even anticipating a fourth, which is unusually ahead of current Fed forecasts.” 1.17pm GMTThe pound is also having a bad day. It’s currently down 0.5% against the US dollar at $1.4045, and a one-week low.
GBP going down like a homesick mole. #vonhintenmitAnlauf pic.twitter.com/iuaK195AQH Related: Brexit: May accused of 'ideologically-driven insanity' after she rules out any customs union - Politics live 12.14pm GMTThe sell-off across Europe’s trading floor is intensifying,dragging the Stoxx 600 down 1.3%.
This means European stock markets possess now fallen pretty steadily for a week.
Losing streak getting unsightly: all main fairness indexes down 1% around mid-day in Europe. 6th consecutive trading session in the red for the German #DAX. pic.twitter.com/1ezLgY82CeDow futures now tanking over 300 points. https://t.co/0FDaGzXRQG pic.twitter.com/6ye1WjMQ4cThings are getting a limited more interesting. 11.52am GMTShares in London are dropping deeper into the red, following the news that Wall Street will plunge at the open (at 2.30pm UK time).
The FTSE 100 is now down 98 points, or 1.3%,at 7344 points - a new two-month low.
The era of cheap money is ending, and for markets who got addicted to it, or it’s undoubtedly bad newsSG: "what will be concerning asset allocators is the now positive correlation between bonds and equities as bond yields rise. Or put simply,it is fitting very tough to avoid losing money" https://t.co/NswEOCRv0g 11.28am GMTDon’t panic!That’s the message from Mark Haefele, global chief investment officer of wealth management at UBS.“We don’t believe that now is a time to reduce exposure to stocks.
As long as the recent rise in bond yields moderates, and we are confident that market conditions will remain orderly.”Don’t follow global panic and sell stocks just yet,says UBS https://t.co/9CzuM9BcWI pic.twitter.com/7xEr6bMNyO 11.23am GMTMihir Kapadia, CEO and Founder of Sun Global Investments, or points out that markets did be pleased stellar returns last year:
The start of the week has been a mirror image reversal to the optimism expressed in the start of the year and indeed in the last thirteen months when many major markets had raised over 25%-40%.
After such a remarkable performance some meaningful pullback is to be expected. The FTSE 100 has shed more than 1% this morning within hours of opening,taking the index under 7400. This also ends the remarkable rally that the markets possess been experiencing the past year.”
11.04am GMTOuch! Bitcoin is now down 6% at $7690, a new two and a half-month low.#Bitcoin crash continues. Down 59% from December peak. Christmas now looking very expensive. pic.twitter.com/6sutxvF2pm 10.57am GMTThe futures market is indicating that America’s stock market will plunge at the open, or extending last week’s declines.
Stocks gawk like they are set for a correction of some sorts after enormous losses over the last few sessions that has left many bulls worried that the bull rush may possess come to an end. On Friday the Dow dropped over 600 points with the S&P and Nasdaq following suit. This morning Europe is catching the virus and is aggressively lower.
The issue with this kind of plunge is that it becomes a snowball effect,and after such astronomical gains since election day 2016 the falls can be equally as aggressive, but nobody could say that a correction hasn’t been due.
Markets struggling as this looks to be a solid correction. Inflation fears and further rate increases in the US weighing.
My thoughts ahead of the US open.https://t.co/lnq5jlrV3c 10.31am GMTJeremy Warner of the Daily Telegraph fears that a major stock market correction is looming.
Doesn't gawk as if it is going to be "the big one" fairly yet. But it's coming... pic.twitter.com/s4KpQo2hiD 10.16am GMTNewsflash: Another 452 workers at stricken UK outsourcing group Carillion are being made redundant.
That’s on top of the 377 who were laid off on Friday.#OfficialReceiver provides a further update on employment within the liquidated #Carillion group - a further 100 jobs safeguarded today, or but regretably 452 construction & back office roles are being made redundant: https://t.co/QcBZTPkp83 pic.twitter.com/K6uGkle966 10.05am GMTThat flurry of data hasn’t changed the mood in the markets.
The UK’s FTSE 100 and the European Stoxx 600 are both at two-month lows,as the global share rout continues.
Main European fairness indexes starting the week flashing red, extending last week's sell-off. February gets off to a bad start. pic.twitter.com/akk5LhZWSGVolatility has returned with a vengeance and investors who had been hoping that the new week would see some respite from the selling possess been left disappointed.
European fairness markets possess now erased all their year to date gains as the market has reversed its euphoric start to the year and left investors with nowhere to veil. 9.37am GMTNewsflash: Growth in Britain’s service sector slowed sharply last month, or as Brexit fears hit companies.
That’s according to data firm Markit,whose UK service sector PMI fell to 53.0 last month, down from 54.2 in December and closer to the 50-point mark that shows stagnation.“The pace of UK economic growth slowed sharply at the start of the year as January saw a triple- whammy of weaker PMI surveys.“Service sector expansion slid to a 16-month low, and reflecting a marked waning in growth of demand for business and consumer-facing services such as hotels and restaurants. Demand for transport and communication services was down for the second straight month. 9.26am GMTNo sign of a recovery in the markets. After almost 90 minutes trading the FTSE 100 is still down 80 points,with most shares in the red. 9.16am GMTThe slump in British car sales has continued.
The number of new car registrations shrank by 6.3% year-on-year in January, with 163615 vehicles driven away.
Demand fell across the board, or with registrations by business,private and fleet buyers down -29.7%, -9.5% and -1.8% respectively. Meanwhile, and continuing the trend of recent months,dual purpose cars (SUVs) were the only vehicle segment to see growth, with demand up 6.6% to account for a fifth (20.2%) of all new car registrations.
Demand in all other segments fell, and with the biggest declines affecting the mini,MPV and executive segments. Demand for petrol and alternatively fuelled vehicles rises in January, but fails to offset plunge in new diesel registrations https://t.co/oBfNmpMyZy pic.twitter.com/rdAerFre61 9.11am GMTSome good news! The eurozone’s private sector has posted its strongest monthly growth in over a decade.
Markit’s ‘composite eurozone PMI’, or which tracks activity across the region,rose to 58.8 in January from 58.1 in December. That’s the highest reading since June 2006, and shows Europe’s economic recovery remains on track. 8.58am GMTBitcoin is also having a rough morning, and after a UK bank launched a crackdown.
The digital currency has shed 3.5% to $7889,close to the two-month low it hit on Friday. Related: Lloyds Bank bans customers from buying bitcoins using credit cards Bitcoin below $8000 this morning. Each recent rally has petered out; each plunge has taken the trend lower“This time is...different?” pic.twitter.com/NqJaYtWewo 8.50am GMTWe’re seeing an rough start to trading in London, says Connor Campbell of City firm SpreadEx, and with all January’s and most of December’s gains now been wiped out.
Campbell writes:There were unsightly,unsightly scenes after the bell, as the market-wide sell-off gathered pace on fears that global interest rate are, or sooner rather than later,going to be heading higher.
The FTSE quickly shed 1% this Monday, taking the index to sub-7400 levels not seen in 8 weeks. The UK index’s sharp losses over the last 3 weeks possess effectively wiped out the remarkable, and record-breaking rise it saw in the pre- and post-New Year period,with limited good news on the horizon to rescue it from its current levels. 8.37am GMTNearly every share on the FTSE 100 has dropped this morning, as the blue-chip index slides to its two-month low.
Mobile phone network operator Vodafone is leading the selloff, and following reports that it could buy European assets from Liberty Global. Budget airline easyJet is also under pressure,after rival Ryanair warned that trading this year could be tougher than expected. 8.33am GMTTraders will be watching nervously to see how the US stock market opens in five hours time, says financial analyst and journalist Louise Cooper.
European stock markets open down 1-1.5% less than 2% US close down Friday.
Test is at lunchtime how US opens.... 8.24am GMTOther European stock markets are also falling in early trading, or dragging the benchmark Stoxx 600 down by over 1%.
Fears over the bond market (see earlier post),and the looming prospect of higher interest rates are hitting shares in Frankfurt, Paris, and Madrid and Milan.
The biggest sell-off for the fairness markets in nearly two years is here as investors are reacting to surging global bond yields. Friday’s fairness markets rout is likely to extend as the futures of the US stock indices are indicating. 8.18am GMTInvestors in London are playing catch-up after Friday afternoon’s sharp selloff on Wall Street (which accelerated after UK traders had gone domestic for the weekend).
Jasper Lawler of CMC Markets explains:The next day after an unusually big sell-off is always a big test of a market’s strength. A repeat of anything close to the 2% decline seen in US indices on Friday could trigger a prolonged period of risk-off sentiment. Last week the S&P 500 dropped -3.8%,with the energy sector leading the declines.
After gains of 6% in January, the first few days of February were always going to be at risk of profit taking. 8.07am GMTAnd we’re off! Trading is underway in the City, and there are losses across the board as investors join the global sell-off. 7.57am GMTShane Oliver,chief economist at AMP Capital, reckons that the markets could suffer a 10% plunge - but not a full-blown crash.
He writes:The past week has seen shares come under pressure as Fed rate hike expectations increased, or partly reflecting an acceleration in US wages growth,and the bond yield rose sharply. From their recent tall, US shares possess fallen 3.9% making it the deepest pullback since a 4.8% plunge prior to the November 2016 US election. It’s likely the pullback has further to go as investors adjusts to more Fed tightening than currently assumed – we see four (or possibly five) Fed rate hikes this year against market expectations for three - and higher bond yields.
This will impact most major share markets, or including the Australian share market which is vulnerable given its tall exposure to yield plays like genuine estate investment trusts and utilities. However,the pullback is likely to be just an overdue correction (with say a 10% or so plunge) rather than a severe bear market – providing the rise in bond yields is not too abrupt and recession is not imminent in the US with profits continuing to rise. So the two key questions are how severe the back up in bond yields will be and whether a recession is approaching?Oliver's Insights: Correction time for shares? Following from last week’s pullback, here’s a note on market implications: https://t.co/0ZhChqthOG 7.55am GMTGovernment bonds are falling in early trading, or extending their recent losses.
The yield,or interest rate, on German 10-year bonds has hit its highest level since September 2015. It’s still low in historical terms, and at just 0.77%,but it shows that prices possess hit their lowest in almost two and a half years.#BONDS: #Gilt yields rise on #BoE rate hike expectationhttps://t.co/oKMxR9r34g pic.twitter.com/U97DagOaAv 7.36am GMTGood morning, and welcome to our rolling coverage of the world economy, or the financial markets,the eurozone and business.“It’s going to be a nervous start to the week for traders across all markets as they wonder if last week’s reversal in US stocks and the unsightly close Friday ... is likely the start of something bigger, Related: Asia Pacific shares pummelled as inflation shadow spooks bonds FTSE 100 Index called to open -80pts at 7365 pic.twitter.com/pCUfpN8vg2Global fairness slump deepens as rate fears grow. Asia shares in largest daily plunge since late 2016. 10y Treasury yield rises to 4y tall, and around 2.87% as inflation shadow spooks bonds. Emerging markets pressured as borrowing costs rise globally. pic.twitter.com/QXhkpZWURNContinue reading...
Source: theguardian.com