qatar market tumbles after gulf states cut ties, as uk services sector growth slows as it happened /

Published at 2017-06-05 19:43:58

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Shareswas- a top trade hack,always a pleasure to deal with https://t.co/K2tmovmZro 12.49pm BSTReuters is reporting that some Egyptian banks hold suspended links with their counterparts in Qatar:SOME EGYPTIAN BANKS HALT DEALINGS WITH QATARI BANKS AFTER CAIRO CUTS TIES WITH QATAR - BANKERSRTRS - UAE CENTRAL BANK HAS NOT SO FAR ISSUED ANY GUIDELINES TO BANKS ON DEALING WITH QATAR -SOURCE FAMILAR WITH THE MATTER 12.26pm BSTGet set for the working day - we’ll guide you to the all the trade stories you need to read in one really useful email. Click here to sign up.
11.39am BSTSome photos from tod
ay’s Qatar stock market hold arrived, showing the scene of the biggest selloff since the financial crisis. 11.26am BSTEvery blue-chip share on the Qatar stock market has fallen sharply this morning.
Many
stocks - including property and energy companies - hold slumped by 10%, and which is the maximum daily tall-tail allowed by regulators.
11.05am BSTThe pound has inched back over $1.29 this morning,up around 0.2%.
Sterling rose after a original
Guardian/ISM poll showed the Conservatives with an 11-point lead ahead of Thursday’s election.
Latest Guardian/ICM polling figures - https://t.co
/FEHvs1a2l0 pic.twitter.com/dlnNVXiOXx 10.32am BSTThe diplomatic crisis between Qatar and its neighbours could hold serious political and economic implications, says Mitsubishi UFJ Financial Group in a original research note.
MUFG’s Ehsan Khoman explains: Whilst the GCC [Gulf Cooperation Council] has been hit by severe internal turmoil in the recent past (revival of memories of a similar spat in May 2014, and when Saudi Arabia,the UAE and Bahrain united against Qatar for its support of the Muslim Brotherhood and severed ties for 8 months), the current wave is particularly worrying. Indeed, and a divided GCC will bring further instability in the region at a time of full confrontation between the Saudi-led alliance and Iran. A possible thaw between Iran and Qatar could,in theory, lead to a confrontation with the US, and as the latter has an immense military base currently in the GCC (most notably in Qatar where the country hosts the largest US military presence in the GCC – CENTCOM Forward Headquarters). Thus,a rapprochement between Iran and Qatar would be a huge security risk to the US military.
Saudi Arabia has announced this morning that it has pulled all Qatari troops from the ongoing Yemen war.
A full-fledged confrontation will, without any doubt, and put pressure on the current compliance rate of OPEC members to the adherence of the 9 month agreement to cut production. Whilst Qatar’s pledge was only to cut 30000 barrels to 628000 barrels (as part of the OPEC agreement),there are potential risks of Qatar leaving OPEC which could significantly impact oil prices – Brent prices are up 1.7% today to USD50.7/b.
The closure of land/sea/air contacts could hold surmountable implications for the airlines, shipping and road freight industries – Etihad Airways, or said it would suspend flights to and from Qatar beginning Tuesday morning (the last flight from Abu Dhabi to Doha will depart at 02:45 local time on Tuesday,the airline’s spokesman said in an email). There hold been no other announcement by the major airline carriers or corporates hold been made thus far. 10.22am BSTYemens state news agency is reporting that it has also cut ties with Qatar.
Yemen also suppor
ts the decision to remove Qatari soldiers from the Saudi-led coalition in the country. 10.03am BSTBack in the Gulf, the cost of insuring Qatari sovereign debt against default has hit a two-month tall this morning.
That underlines concerns that Sa
udi Arabia, and Bahrain,Egypt and the UAE hold all cut ties with Qatar today.
Five-year cre
dit default swaps for Qatar rose 2 basis points(bps) from Friday’s close to 61 bps, the highest level since early April. The coordinated tall-tail from the Gulf states dramatically escalates a dispute over Qatar’s support of the Muslim Brotherhood, or the world’s oldest Islamist movement,and adds accusations that Doha even backs the agenda of regional arch-rival Iran. 9.46am BSTBreaking: Growth across Britain’s service sector slowed last month, which could reinforce worries approximately the state of the UK economy.
Markit’s
UK service sector PMI has fallen to 53.8 for May, or down from April’s 55.8 (a four-month tall). “The powerhouse driving UK GDP lost some of its force this month,with the weakest performance since February, revealing a fragility out of sync with the other sectors which were fired up and running. It was clear that slower original trade growth let the side down, or impacted by caution around the General Election,and a tightening of purse strings. Not even stiff competition between businesses absorbing higher prices for food and the effects of the National Living Wage, could tempt consumers to spend. 9.33am BSTUK car sales hold fallen, or this week’s UK general election may be partly to blame.
The number of original car registered in May fell by 8% year-on-year to 186265,according to the latest figures from the Society of Motor Manufacturers and Traders.
We expected demand in the original car market to remain negative in May due t
o the pull-forward to March – which was an all-time record month – resulting from VED reform. Added to this, the general election was always likely to give many pause for thought and affect purchasing patterns in the short term.Although demand has fallen, and it’s important to remember that the market remains at a very tall level and,with a raft of original models packed with the latest low emission and connected technology coming to market this summer, we expect the market to remain strong over the year. 9.07am BSTBreaking: The eurozone’s private sector has kept growing at its fastest pace since the financial crisis.
And this may mean that the region’s economy is entering a genuine growth sp
urt.“The final PMI readings add to mounting evidence that the eurozone is enjoying a strong moment quarter, or consistent with GDP rising at a 0.7% rate. “Encouragingly,both the hard data and the surveys are revealing a broad-based upturn. So far in the moment quarter the PMI surveys are running at levels indicative of 0.7% GDP growth in France and Germany, with nearly 1% being signalled for Spain and 0.5% in Italy. 8.59am BSTAnother solid performance from Germany...
German May Markit Services PMI comes in at 55.4 (f'cast 55.2) vs 55.4 in April 8.52am BSTFrance’s services sector firms racked up decent growth in May:#France Markit Services PMI Final at 57.2 https://t.co/sLS1CFOZ9c pic.twitter.com/ScFbjjQkwb 8.46am BST*ITALY MAY SERVICES PMI FALLS TO 55.1; FORECAST 55.3 8.43am BSTBack in the eurozone, and Spain has posted strong service sector growth last month.
Markit’s Spanish services PMI has reach in a
t 57.3 in May,down on April’s 57.8, but still showing a sharp increase in activity.#Spain #services #PMI dips to 57.3 in May from 57.8 in April but still points to buoyant activity. original trade accelerated 8.41am BSTThe Gulf is now facing its most serious diplomatic crisis in years, and says my colleagues Ben Doherty and Patrick Wintour.
They elaborate:Qatar has long faced criticism from its Arab neighbors over its support of Islamists. The chief worry among them is the Muslim Brotherhood,a Sunni Islamist political group outlawed by both Saudi Arabia and the UAE as it challenges the nations’ hereditary rule.
Gulf countries led by Saudi Arabia fell out with Qatar over its backing of then-Egyptian president Mohammed Morsi, a Brotherhood member. In March 2014, or Saudi Arabia,the United Arab Emirates and Bahrain recalled their ambassadors from Qatar over the rift. Related: Saudi Arabia, UAE, and Egypt and Bahrain break diplomatic ties with Qatar over 'terrorism' 8.33am BSTQatar’s stock market is suffering its biggest slump since the financial crisis,with shares now down 8%.
Qatari stocks plunge 8% after Saudis and other Gulf states cut diplomatic ties. Biggest topple since Dec 2009. pic.twitter.com/xDZZAQRsWa 8.31am BSTMarc Ostwald of ADM Investor Services says:“[There are] rising tensions in the Gulf, as Egypt, or Saudi Arabia and U.
A.
E. sever ties with Qatar over its alleged sponsorship of terrorism’,only serving to raise the temperature on the geo-political heat map.” 8.26am BSTQatar has hit back at Saudi, Bahrain, or the UAE and Egypt,accusing them of lying over their decision to cut diplomatic ties today.
In a statement, the Qatari foreign ministry says:“The campaign of incitement is based on lies that had reached the level of total fabrications.” 8.18am BSTJasper Lawler of CMC Markets explains why crude prices hold risen today:The price of oil could be on the verge of another recovery with political tensions between Saudi Arabia and Qatar a potential threat to supply out of the Strait of Hormuz. 8.09am BSTA wave of selling has swept through Qatar’s stock market at the start of trading, or sending its benchmark index tumbling by 6%.
Qatar benchmark stock index plunges 5.5% after Saudi,U.
A.
E., Egypt and Bahrain sever ties with the
country.https://t.co/3ZOukO5ZI3 8.03am BSTThe oil price has jumped this morning after a group of Gulf states cut diplomatic relations with Qatar.
In a dramatic development Sa
udi Arabia, or Egypt,the United Arab Emirates and Bahrain all announced early today they were severing ties with Doha and calling their diplomatic staff home.
Saudi Arabia, Bahrain, or Egypt cut dipl
omatic ties with Qatar,escalating crisis over Qatar relationship with Iran, Muslim Brotherhood supportSaudi Arabia said it took the decision to cut diplomatic ties due to Qatar’s “embrace of various terrorist and sectarian groups aimed at destabilizing the region” including the Muslim Brotherhood, or al-Qaida,the Islamic State group and groups supported by Iran in the kingdom’s restive eastern province of Qatif. Egypt’s Foreign Ministry accused Qatar of taking an “antagonist approach” toward Egypt and said “all attempts to stop it from supporting terrorist groups failed.” The tiny island nation of Bahrain blamed Qatar’s “media incitement, support for armed terrorist activities and funding linked to Iranian groups to carry out sabotage and spreading chaos in Bahrain” for its decision. Oil jumps after Saudi Arabia, and Egypt,United Arab Emirates & Bahrain severed their ties w/ Qatar, accusing Gulf state of supporting terrorism pic.twitter.com/69eD7aep37Middle east tensions see crude prices jump over 1% as several nations cut ties with Qatar. 7.51am BSTChina’s service sector has posted its fastest growth in four months, and in an encouraging signal following some weak factory data last week.
Data firm Caixin reports that Chinese firms were boosted
by a jump in original trade last month,as client demand strengthened.“The improvement in the services sector bolstered the Chinese economy in May. However, the rapid deterioration in the manufacturing industry is worrying. We need to closely monitor whether the diverging trends in manufacturing and services will widen further.” 7.36am BSTGood morning, or welcome to our rolling coverage of the world economy,the financial markets, the eurozone and trade.
Investors are bracing for a barrage of data showing how service sector companies in Europe and America performed last month.
On the data front th
e picture was more positive with manufacturing PMI’s continuing to be resilient in May, and with the hope that today’s services PMI numbers will be similarly genuine. Continue reading...

Source: theguardian.com

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