TOKYO, Oct 9 — Asian stocks fell the most in a week today as the United States and China's ever-expanding dispute over trade and foreign policy showed little sign of coming to an end, weighing on global economic growth. MSCI's broadest index of…
NEW YORK, Oct 8 — Wall Street stocks tumbled early today after fresh US sanctions on Chinese companies dimmed expectations for a breakthrough in this week’s trade talks. Analysts cited the Commerce Department’s announcement late yesterday…
NEW YORK, Oct 7 — Wall Street stocks dropped early today ahead of closely-watched US-China trade talks, while investors began to look ahead to the third-quarter corporate earnings season. Top officials from Beijing will be in Washington this week…
TOKYO, Oct 3 ― Asian stocks, already under pressure from growing global growth fears, tumbled today after New York markets slumped overnight because the United States opened a new trade war front by saying it will impose tariffs on US$7.5 billion…
NEW YORK: Stock markets on both sides of the Atlantic took a steep downward turn on Tuesday after a US survey pointed to the weakest manufacturing sector in a decade.
Combined with a tepid inflation reading from the eurozone, and confirmation that British GDP contracted in the second quarter, the figures rekindled fears over worldwide growth.
An index of US manufacturing activity fell to the lowest level since June 2009, according to the Institute for Supply Management, which pointed to trade conflicts as the biggest headwind.
“Global trade remains the most significant issue, as demonstrated by the contraction in new export orders that began in July 2019,” Timothy Fiore, chair of ISM’s manufacturing survey, said in a statement. “Overall, sentiment this month remains cautious regarding near-term growth.”
The report came as the World Trade Organization on Tuesday cut its 2019 trade growth forecast to 1.2 percent, warning of an economic hit from tensions over international commerce.
“Trade conflicts heighten uncertainty, which is leading some businesses to delay the productivity-enhancing investments that are essential to raising living standards,” Azevedo said.
And he cautioned that job creation could also be threatened “as firms employ fewer workers to produce goods and services for export.”
Eurozone stocks, which had spent most of the session calmly tweaking portfolios at the start of the final quarter, suffered an abrupt fall to end the day.
Wall Street, which had opened higher, fell quickly into the red and stayed down the rest of the day. Major indices ended down more than one percent.
The ISM report was a “game changer,” said LBBW’s Karl Haeling.
“There’s a growing recognition that the spread of negative economic impulses around the world is starting to land on US shores in a meaningful way.”
Analysts have pointed to upcoming trade talks between Beijing and Washington as critical to the market’s fortunes in the coming period.
Other key potential catalysts include the third-quarter corporate earnings period and upcoming Federal Reserve meetings that could lead to lower interest rates.
Strike hits GM
Among individual companies, General Motors dropped 3.7 percent as a United Auto Workers strike further pinched operations.
The company announced it will furlough 6,000 workers in Mexico due to the strike, while JPMorgan Chase estimated the strike has cost the company around $1 billion so far. Workers in Canada also were laid off temporarily.
Shares of online brokerage firms plunged after Charles Schwab announced plans to eliminate commissions for many trades. Schwab fell nearly 10 percent, while Etrade sank 16.4 percent and TD Ameritrade nosedived 25.8 percent.
US-listed shares of Credit Suisse dropped 2.7 percent following the resignation of chief operating officer Pierre-Olivier Bouee after an internal investigation into the bank’s decision to spy on a star banker who left for rival UBS.
An internal probe exonerated chief executive Tidjane Thiam in the scandal, which has shaken the bank in recent weeks. – AFP
TOKYO, Sept 4 ― Asian stocks dipped early today after poor US economic data stoked global recession fears and further soured investor sentiment already hurt by heightened trade war concerns. Safe-haven government bonds fared well in the wake of…
TOKYO, Sept 2 — Tokyo stocks closed lower today on renewed fears of escalation in the US-China trade war and its impact on the global economy. The benchmark Nikkei 225 index lost 0.41 per cent, or 84.18 points, to 20,620.19, while the broader…
NEW YORK, Aug 24 ― Stocks, the dollar and oil prices fell yesterday while safe havens rose after President Donald Trump demanded US companies look at alternatives to China for manufacturing, following Beijing's retaliatory tariffs on American…
TOKYO: Global stocks slumped to more than two-month lows in early Asian trade on Thursday, tracking the Wall Street slide as an inverted U.S. bond yield curve sent a flashing warning to investors about rising recession risks.
Yields on 10-year U.S. Treasury notes fell below the two-year yield, intra-day, for the first time since 2007, in what is known as a yield curve inversion and widely seen by investors as a sign that a recession is coming.
Asia shares sank at the open with Japan’s Nikkei average tumbling 2.0% and Australian stocks falling 1.9%.
The MSCI ACWI, which incorporates readings of 49 equity markets across the world, shed 2.1% to its lowest level since June 4, while E-Mini futures for the S&P 500 lost 0.1% in early Asia.
“The yield curves are all crying timber that a recession is almost a reality and investors are tripping over themselves to get out of the way as economic recession hurts corporate earnings and stocks can drop as much as 20%,” said Chris Rupkey, chief financial economist at MUFG Union Bank.
MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.4% in early trade.
All three major U.S. indexes closed down about 3%, with the blue-chip Dow posting its biggest one-day point drop since October, major equity indices in Europe closed down 2% or near that while crude prices slumped almost 5% at one point.
Economic data from China and Germany suggested a faltering global economy, hit by the worsening U.S.-China trade war, Brexit and geopolitical tensions.
Senior U.S. officials said on Wednesday China has made no trade concessions after U.S. President Donald Trump postponed the 10% tariffs on over $150 billion worth of Chinese imports, the latest sign that efforts to reach a trade deal were going nowhere.
Major currencies were relatively calm, with the dollar index rising 0.2% and the euro adding a marginal 0.1% to $1.1144. The Japanese yen strengthened 0.1% versus the greenback at 105.83 per dollar, having firmed 0.8% on Wednesday.
Oil prices shed 3% on Wednesday after fresh Chinese and European economic data revived global demand fears and U.S. crude inventories rose unexpectedly for the second week in a row.
In early Asian trade, U.S. West Texas Intermediate (WTI) crude futures dropped 0.7% to $54.82 a barrel, having lost 3.3% in the previous session.
Gold rose over 1% on Wednesday as an inverted U.S. Treasury yield curve and weak euro zone data drove investors toward safe-haven bullion.
Spot gold stood at $1,516.55 per ounce early Thursday, flat on the day and not far from its six year high marked Tuesday. – Reuters
NEW YORK, Aug 12 — Wall Street stocks fell early today as unrest in Hong Kong added to lingering anxiety over weakening growth and the grinding US-China trade war. Authorities said more than 5,000 people descended on the Hong Kong airport today…