Stocks Fall Amid China Worries

9 November, 2018

European stocks slid, following a retreat in Asia, amid growing concerns about a slowdown in China and policy makers’ steps to address it. The dollar advanced as the Federal Reserve stayed on track for a December rate hike. Mining and energy shares led a drop in Europe’s main equity gauge after crude oil entered a bear market. Futures contracts pointed to second day of declines for U.S. stocks. Equities in Hong Kong and China led losses in Asia, with financial shares doing particularly poorly following news that Beijing plans to set quotas for banks to pump credit into private companies. Treasury yields edged lower.

Softer Chinese producer-price gains, weak car sales and a disappointing outlook from a top online travel company combined to reignite lingering concerns about the health of the world’s second-biggest economy. That’s capturing investor attention after a Fed rate meeting on Thursday that offered few surprises, with policymakers repeating their outlook for “further gradual” increases. Meanwhile, the offshore yuan held this week’s drop, amid little sign of an end to the U.S.-China trade war in the wake of the midterm elections. The pound weakened and gilts gained amid ongoing speculation over a potential Brexit deal. Emerging-market stocks and currencies slid.

The Stoxx Europe 600 Index dipped 0.5 percent as of 9:22 a.m. London time, the largest decrease in two weeks. Futures on the S&P 500 Index fell 0.4 percent, the biggest fall in a week. The MSCI Asia Pacific Index declined 1.1 percent. The MSCI Emerging Market Index sank 1.5 percent to the lowest in more than a week on the biggest tumble in more than two weeks. The Bloomberg Dollar Spot Index climbed 0.2 percent to 1,206.62, the highest in more than a week. The euro declined 0.2 percent to $1.1337, the weakest in more than a week.


Source link  
Oil sector will lose 95% by 2050

Companies in the oil and gas sector, including large groups such as Shell, BP and Exxon, could lose 95% of their value by 2050 if governments...

The US economy recession by 2021

In a recent survey, most business economists believe the U.S. will fall into recession by 2021. Days after the market euphoria over a ceasefire in the...

Fed plans some further hikes

The U.S. Federal Reserve raised interest rates on Wednesday, as expected, but forecast fewer rate hikes next year and signaled its tightening cycle is nearing...


Pound to remain in Limbo

The British pound hit its lowest level in over 20 months yesterday before recovering in today's trading session on the back of a decision by British Prime...

Why $70 is so Important for Brent

October was a brutal month not only for the U.S. IT-Companies. Crude oil prices also had significant and important shifts. After renewing the 4-year highs...

Is the 'extreme fear' over now?

Chinese equities are developing a rebound on Friday, supported by the hopes for progress in China and the US trade negotiations. The telephone...


Dollar is waiting for what Powell says

The U.S. dollar has returned to growth on the comments from the Fed officials about the need of further rates increases this year and next one. At the end...

Toxic lira can push euro to $1.04

The collapse of the Turkish lira spreads its toxic influence on the European and EM financial markets. Asian bourses have been losing more than 1% at Monday...

Dollar consolidates expecting rally

Financial markets rise on positive sentiments about earnings and China's fiscal stimulus. That pushed down the demand for USD, but more likely it is just...

  


Share: