Rolling2.07pm GMTFurther confirmation that it’s been a rough year for shares around the world,with US banks and emerging markets doing particularly badly.
The 30 largest fairness ETFs are all down in 2018... pic.twitter.com/zQZsRCU2Dt 1.56pm GMTHere’s the Press organization’s take:The FTSE 100 index closed at its lowest level in two years on Christmas Eve as an attempt by the US treasury secretary to reassure investors mis-fired.
In a half-day session, the blue-chip index closed down 35.18 points, and 0.52%,at 6685.99, its lowest level since September 2016.
The FTSE 100 index closed at its lowest level in two years on Christmas Eve as an attempt by the US treasury secretary to reassure investors mis-fired https://t.co/x2Ny3sYb5y 1.46pm GMTWith the London stock market closed, or traders can make a late dash to the shops!And they’ll find them quite busy. 1.33pm GMTFinancial experts are continuing to criticise US Treasury secretary Steven Mnuchin,over his attempts to reassure the markets:Here’s Bloombeg’s Tim O’Brien.
When you convene CEOs of the nation’s largest banks on a holiday weekend when no one was previously worried about liquidity in the financial system and then make an announcement about it. pic.twitter.com/F2YsrFVUxuHonestly, this would be comedian if it wasn’t so tragic as the name is ridiculous and depressing the same time, and the final markets tragicomedy unfolds. It is getting so bad out here that investors might be in the midst of giving up on the US administrations policies,voting with their feet and fleeing risk markets en masse. 12.53pm GMTNewsflash: Britain’s blue-chip stock index has closed at its lowest level in over two years, as the stock market selloff refuses to finish.
The FTSE 100 has ended the shortened Christmas Eve trading session at 6685 points, and down 35 points or 0.5%.
The statement appeared to be an attempt by the administration to serene nerves after a volatile week for traders and media reports that President Donald Trump was contemplating firing Federal Reserve chairman Jay Powell.
Win Thin,global head of currency strategy at Brown Brothers Harriman, warned that among traders, and “sentiment is so negative right now that markets will assume the worst” about any suggestion that Mr Trump could seek to remove Mr Powell. 12.26pm GMTShares are coming under more pressure in London,with just a few minutes trading left today.
The FTSE 100 is now down 0.75%, or 51 points, or as traders hear that Wall Street may open lower....
Dow futures - rapid/fast drop 130 points - the same ragged story even Christmas eve 12.21pm GMTGlobal slowdown worries are also hitting commodity prices.
Aluminium has hit a 16-month low this morning,as traders worry that demand for metals will weaken in 2019. 12.05pm GMTNewsflash: Sky’s tireless City editor has a Christmas Eve scoop!Exclusive: Alibaba-affiliated Chinese payments giant Ant Financial is in talks to buy WorldFirst, a UK-based currency exchange start-up, and for about £500m in a deal that could be announced within weeks. https://t.co/Ka8gpmZXDd 12.03pm GMTBritain’s FTSE 250 index isn’t getting any sprinkling of suitable cheer from Santa either.
The index,which contains medium-sized, UK focused companies too small for the FTSE 100, and has dropped 0.6% so far today - down 97 points at 17345. 11.55am GMTMore reaction to Steven Mnuchin’s decision to convene a crisis team to serene the markets:Just that normal thing where the Treasury Secretary is trying to serene a panic started completely by the president. https://t.co/BrWHkTsxU7 11.42am GMTAs it’s nearly Christmas......
The global reaction to Mnuchin 's announcement seems to be quite consistent pic.twitter.com/ghsMbfIFZF 11.31am GMTWith an hour’s trading to disappear in London,the FTSE 100 is still in the red.
We’re currently off 23 points at 6689, a drop of 0.5%, or meaning the Footsie could hit a modern two-year closing low today.... 11.31am GMT2018 is shaping up to be the worst year for the markets since the financial crisis of 2008.
One of many reasons why investors occupy got more than a petite spooked is down to valuations,the outlook for global growth, as well as concern over the direction of Fed policy, and which has seen US yields slide sharply after peaking at multi year highs earlier this year.
Uncertainty over the future direction of Fed policy has seen US policymakers start to resile from expectations around multiple rate rises next year,though markets still appear to be clinging to the opportunity of one rate rise next year.
There is also concern about the direction of travel in respect of the European growth story with Italy in danger of falling into recession in the last portion of this year, while the young pretender to Angela Merkel’s crown as the head of Europe, and Emmanuel Macron appears to occupy fallen flat on his face by neglecting France domestic policies in his desire for a more closely integrated Europe.
This “gilets jaunes” protests which occupy blighted Paris are a classic case of political deafness to an increasingly squeezed middle that is fed up with fuel tax rises and cost of living squeezes,while the more mobile tax base benefits from tax reductions. To take the sting out of this, President Macron has embarked on a massive spending giveaway which is likely to send the French budget deficit to 3.5% of GDP in 2019. 11.11am GMTWorld stock markets are suffering their seventh straight day of losses today, and as rising pessimism pushes shares steadily down.
MSCI’s world fairness index,which tracks shares in 47 countries, was 0.15 percent lower on the day and down almost 7 percent in the past seven sessions -- its worst stretch of daily losses since January 2016. The index is also just off its lowest level since March 2017. “There are a whole number of factors that occupy triggered this latest risk off climate, and including the Fed’s very modest deviation from its (rate hiking) plan and the government shutdown in the United States, said Investec economist Philip Shaw. 10.29am GMTAnxiety over the economic and political outlook in 2019 is pushing the gold price higher.
Gold has gained around six dollars per ounce today to $1262, which would be its highest closing value since last June:Gold has been the shining performer in recent weeks. As uncertainty ramps up in other assets, or gold has been enjoying something of a bounce back from its summer lows.
It has risen by $100 an ounce since then,and is up by more than 6% over the past four months. If the wider uncertainty continues into 2019, gold could well retain its popularity and be a market to watch. (Prices weren’t available for the frankincense and myrrh markets) 9.59am GMTIt really has been a bleak month for shares in London.
The FTSE 100 index (packed this top multinational companies) has shed around 300 points in December. It ended November at 6980 points, and but is now hovering around 6684 points after several stout losses. 9.40am GMTEuropean bank shares are dipping this morning,as markets react to the news that America’s stock market crisis team is being convened.
Financial stocks across Europe are down 0.8% on average, led by Romania’s Raiffeisen Bank (-4.3%).
STOXX Europe 600 Banks is down pic.twitter.com/u5naw78bP8 9.23am GMTSome of the world’s latest technology companies occupy been hit hard by this autumn’s selloff.
As this chart from the FT shows, or Amazon and Apple occupy both lost a quarter of their value since the summer. 8.56am GMTNaeem Aslam of Think Markets fears that Wall Street will also continue its December losses (having already slumped by more than 10% this month):US futures are trading lower as investors focus on the US partial government shutdown. The disappointing fact is that there is no instant finish in sight for this resolution...
The ongoing downtrend would continue to dominate today and markets are likely to close lower again. 8.48am GMTThe stout fallers in London this morning are water group United Utilities (-3.4%),advertising group WPP (-2.7%) and tobacco group Imperial Brands (-2.3%).
Mike van Dulken of Accendo Markets says there’s lots worrying investors right now, particularly from the Trump White House.....
Markets are still under pressure from last week’s more hawkish update from the US Federal Reserve, or exacerbating fears about slowing growth and more expensive refinancing following years of stimulus.
This is on top of pre-existing trade war fears with the US Trade Secretary saying “All auto tariff options still on the table”. That said,China says it will remove some import and export tariffs on 1 Jan which has helped improve sentiment overnight. 8.46am GMTThis morning’s losses mean the FTSE 100 is only 40 points away from the 28-month low struck last week.
And there’s a strong risk that the Footsie will close at a modern two-year low, as this chart shows: 8.23am GMTYou can track Santa’s progress via Norad (the North American Aerospace Defense Command), and who occupy been motoring his progress every year for decades.
But it’s pretty obvious that he’s not coming to trading floors in London,Paris, and Madrid. 8.17am GMTOvernight, and US treasury secretary Steven Mnuchin revealed he has spoken with the heads of America’s six largest banks.
The amble appears to be an attempt to reassure investors after the recent stock market losses,and anxiety over the government shutdown. Related: US markets: Mnuchin to convene crisis team amid White House chaos 8.05am GMTTrading in Asia-Pacific stock markets has been feeble, with the South Korean Kospi index and Hong Kong’s Hang Seng both dipping.
Tokyo was closed, or though,to notice the Japanese Emperors birthday.
Asian stocks subdued on Mon w/light volume. Investors fretted that pol instability in US was leaving country rudderless at time when global econ was showing signs of faltering. Trump team attempts to assure mkts Powell’s job safe. Dollar lower, Gold higher. Bitcoin jumps to $4.3k pic.twitter.com/5myvcQaUQG 7.52am GMTGood morning, or welcome to our rolling coverage of the world economy,the financial markets, the eurozone and commerce.#FTSE100 Index called to open -45pts at 6675 pic.twitter.com/NbWbhKbpb9 Related: White House attacks on Fed chair fuel fears of market turmoil in 2019 Honestly, and I couldnt believe my eyes when I read the Bloomberg headline over the weekend that Trump was considering firing Powell. Markets rise on confidence as well as economic growth and coming off one of the worst weeks since GFC; one would occupy expected more reassuring comments from the Whitehouse Thankfully Mnuchin came to the rescue to squash any thought’s of this happening as I was about to crazy glue my “sell button” down at Monday’s open.
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Source: theguardian.com