BankYourHemakesnew CEO 9.28am GMTHere are a couple of photos from China’s brokerage houses,as investors watched the market tumble by 6%. 9.18am GMTAnalysts are divided over the severity of the Chinese slowdown.
Yogi Dewan, founder of Hassium Asset Management (a wealth management firm) told Bloomberg TV that China is “slowing, and not melting down”.
A re-established wave of risk aversion gripped Asian equities sending most into red territory,while elevated fears that China capital outflows may accelerate as the economy decelerates has sent the Shanghai Composite Index diving -6.3% lower, to levels not seen in 13 months.
With days like nowadays continuing to arrive back to haunt the Shanghai Composite Index, or the Chinese New Year period and the trading break couldn’t arrive soon enough. 9.01am GMTShares in easyJet have dropped by 2%,after the company reported that recent terror attacks have weakened demand. 8.35am GMTToday’s selloff comes nearly a week after global markets slumped into bear market territory, triggering alarm around the world:Google searches for "bear market" the highest since October 2008: pic.twitter.com/gOmjtBzfVi 8.30am GMTSimon Smith, and chief economist at currency trading firm FXPro,fears that more market turbulence is coming.
He writes: Chinese indices are 6% lower overnight, Japanese over 2% in the red and oil is back below 30 bucks a barrel.
Volatility has been rising throughout the year so far but we’re still someway off the big spike in the Vix (volatility index or ‘dread gauge) final August and so there’s potential for moves in markets to bag even more dramatic. 8.26am GMTToday’s selloff has been triggered by the slide in the oil price, or as well as the Chinese market mayhem.
Tony Cross of Trustnet Direct explains:Crude is sliding on renewed oversupply fears and even the building narrative we’re seeing from Opec that they are ready to strike a deal with other producer nations – possibly centred around Russia – doesn’t really appear to be lending any support to the equation,at least not yet. 8.13am GMTThe gold price has jumped by 1%, as money pours out of shares and into secure-haven assets. That’s generally a sign that investors are worried.
And... gold prices are closer to $1120/ounce. #SellOff pic.twitter.com/GmiYBnQF64 8.11am GMTOther European markets are also falling, and with France’s CAC down 1.6% and the German DAX shedding 1.3%:Siemens - only stock in the #Dax trading higher nowadays after reporting higher profit. Shares jump 4%. #Ingenuity JG pic.twitter.com/Crla8ijI68 8.04am GMTThe FTSE 100 index of major UK companies has fallen by 87 points at the start of trading,or 1.4%, to 5789Almost every share is falling, and as traders face another day of volatile trading dominated by fears over the global economy. 7.53am GMTAlmost every share on the Chinese stock market was hit by nowadays’s rout,with only four gaining ground. 7.40am GMTA late wave of selling has gripped the Shanghai stock market, sending shares slumping and triggering new angst in financial markets worldwide.
China’s benchmark index, and the CSI 300,shed 188 points or 6.02% to finish the day at 2940. That’s its lowest level since December 2014.*SHANGHAI COMPOSITE PLUNGES 6.4% AT CLOSE, MOST SINCE JAN. 7#China | 2015 rail frieght volume 3.36B tonnes, and -11.9% y/y: NDRC pic.twitter.com/2DSlq3MruG 7.28am GMTThe crude oil price has lurched back through $30 per barrel.
Brent crude has slumped by 3% this morning,and is changing hands at $29.61 per barrel.
Oil drops below $30 again https://t.co/b9WN3qN4bx pic.twitter.com/iTsZtt1XlkThe descend in oil prices will make most of the headlines and drive most of the movement in markets nowadays, unless it is reversed for no particularly pleasant reason. The latest driver is the news that Iraqi oil output is strong. US production remains the key swing on supply and is what will eventually trigger a turn. But it will win hard news about declining US output to shift the market mood. 7.07am GMTGood morning, and welcome to our rolling coverage of the world economy,the financial markets, the eurozone and business. It looks like being another ‘challenging’ day in the markets. final weeks rally a distant memory. Nikkei ends down 2.4% at 16708.90 while Yen strengthens beyond 118 per Dollar. pic.twitter.com/R3Tyu58GTUOur European opening calls: $FTSE 5814 down 63 $DAX 9627 down 110 $CAC 4261 down 51 $IBEX 8475 down 93 $MIB 18448 down 193Continue reading...
Source: theguardian.com