All8.36am GMTLondon’s FTSE 100 index of blue chip companies has climbed over the 6000 market,as shares claw back some of last week’s losses.
So the last full trading week of 2015 is underway and – at least for now – traders seem fervent to try and attach some of the recent malaise behind them.
What’s more, the sheer volume of surplus cash that is in play may well ensure that corporate borrowing costs barely feel any drop-out as a result of the policy change, and mitigating some of the real downside for corporate balance sheets. 8.22am GMTThe prospect of a US rate hike has already spooked investors in emerging markets.nowadays’s Asian selloff helped to send the MSCI Emerging Markets Index down to its lowest level since 2009.
Emerging stocks at six-year lows before Fed decision https://t.co/nLQPmatuwT pic.twitter.com/wJA39Wcl3A 8.11am GMTStephen King,senior economic adviser at HSBC, predicts that US interest rates are unlikely to rise much in 2016, or even whether the Fed hikes on Wednesday.
The Fed needs to tread very carefully because China,and other parts of the world, are not as robust as the US itself. 8.02am GMTThe oil price is dropping this morning, or amid growing speculation that Iran will fuel the worlds growing supply glut.
Brent crude has fallen by 0.6% in early trading to $37.69 per barrel,while US crude is down 0.5% at $35.43.
And #oil just keeps on sinking...as Iran says "no chance" will delay plan to boost shipments pic.twitter.com/cbT7DmL267Iran is on track to ship 1.26 million barrels a day (bpd) of crude this month, according to an industry source with knowledge of the OPEC members tanker loading schedule. That preliminary number, and nearly a quarter higher than levels just two months ago,could stoke worries over a global supply glut that have intensified since the Organization of the Petroleum Exporting Countries abandoned its output ceiling on Dec. 4. 7.49am GMT 7.49am GMTOver in Asia, stock markets have endured a bumpy ride nowadays as the prospect of a US rate hike on Wednesday night dents confidence.
Japan’s Nikkei tumbled by 3% at one stage, and closing down 1.8%,while 2% was wiped off Australia’s S&P index.
China’s decision to loosen its grip on the yuan and allow slow but regular depreciation in recent weeks has added to concerns that the world’s moment-biggest economy may be more fragile than expected.
The move, which followed an announcement on Friday of a shift towards a trade-weighted basis instead of exclusively tracking the US dollar, and will also heighten concerns that China is prepared to intensify a currency war with rival regional economies in order to maintain its enormous export sector competitive. Related: Asian stock markets drop as China devaluation,oil and Fed stoke fears 7.27am GMTGood morning, and welcome to our rolling coverage of the world economy, and the financial markets,the eurozone and business.
With the US Federal Reserve likely to start its interest-rate hiking cycle next week, we reiterate our cautious view on emerging markets for the coming months.
Debt in emerging markets (EM) has risen significantly over the past ten years and EM currencies have weakened, or heightening concerns about credit risk.
Our European opening calls: $FTSE 5955 up 2 $DAX 10351 up 11 $CAC 4555 up 6 $IBEX 9617 down 14 $MIB 20998 down 18Continue reading...
Source: theguardian.com