Category Archives: FTSE

US faces worst quarter ‘since Great Depression’, but markets rally – business live

Posted on by

Rolling coverage of the latest economic and financial news

Wall Street has opened higher, despite the prospect of a sickening slump in growth this quarter.

The Dow Jones industrial average has gained 109 points, or 0.46%, to 23,884 as a new week’s trading begins.

Alexandra Scaggs of Barrons has spotted that General Motors’ banks pushed it to suspend its dividend (as flagged earlier).

so GM suspended its dividend & share buybacks

one interesting point that's not in the headlines: Banks wanted that as a condition for extending more credit to the company https://t.co/RWCWF4tvea

to me the press release reads like "hey we decided to stop doing these things"

and the filing reads like "our lenders asked us to stop doing these things before they would extend the repayment date on one of our loans" pic.twitter.com/wH5R4aCqDF

Continue reading...

Oil sinks again as investors fret about economic cost of Covid-19 – business live

Posted on by

Rolling coverage of the latest economic and financial news

European markets are falling deeper into the red this morning, as coronavirus recession fears swirl.

The FTSE 100 is now down 90 points, or 1.5%, at around 5,700 points - with similar losses in other markets.

The OBR says the UK economy could fall by 35% in the second quarter. Brutal for sure, but it also expects a very sharp bounce back. This puts it in the V-shaped recovery camp, which is an ever-decreasing circle. Charles Evans, the Chicago Fed president, said yesterday the US is in for a very sharp but hopefully short downturn.

Money managers are more pessimistic. According to Bank of America’s latest Global Fund Manager Survey, just 15% see a V-shaped recovery. Over half (52%) see a U-shaped recovery, where the long line along the bottom stretches on for some time, perhaps years. A fifth (22%) see a W-shaped recovery – possibly sparked by a sharp bounce back and second or third wave of infections – and 7% see the dreaded L – a long depression like the 1930s and no real recovery. The biggest tail risk is a second wave of infections, which makes the speed at which you reopen economies key. My bet, for what it’s worth, is WWW.

Newsflash: Global oil demand is expected to fall by a record amount this year -- according to industry experts.

The International Energy Agency has predicted that demand will slump by 29 million barrels per day in April -- to levels last seen in 1995 -- as the Covid-19 lockdown hits demand extremely hard.

“By lowering the peak of the supply overhang and flattening the curve of the build-up in stocks, they help a complex system absorb the worst of this crisis.

“There is no feasible agreement that could cut supply by enough to offset such near-term demand losses. However, the past week’s achievements are a solid start.”

Continue reading...

Markets plunge despite coordinated action by central banks

Posted on by

Sharp losses recorded after US interest rate cut, as Bank of England hints at further support to combat turmoil

The FTSE 100 fell below 5,000 points on Monday and trading on Wall Street was suspended for the third time in a week as markets were gripped by mounting concerns over the threat of a global recession, despite a coordinated effort by central banks to protect growth and jobs.

In an escalation of the worst turmoil since the 2008 financial crisis, stock markets suffered further sharp losses on Monday despite dramatic action taken by the US central bank late on Sunday in an attempt to limit the economic impact of the coronavirus pandemic.

Continue reading...

FTSE on course for biggest fall since financial crisis

Posted on by

World markets plunge on back of coronavirus-driven recession fears and threat of oil price war

Global stock markets have suffered their biggest falls since the 2008 financial crisis and trading was temporarily suspended on Wall Street after an oil price crash rattled investors fearing a coronavirus-driven global recession.

Dealing in shares on the main US indices was frozen within minutes of the opening bell, as circuit breakers were triggered by a 7% fall on the S&P 500. Once trading resumed 15 minutes later, the Dow Jones Industrial Average completed a fall of more than 2,000 points for the first time ever – a fall of more than 7%.

Continue reading...

Global stock markets post best year since financial crisis

Posted on by

FTSE 100 records best performance since the referendum year, jumping 12%

Global stock markets have posted their best year since the aftermath of the financial crisis a decade ago, as investors shrugged off trade tensions and warnings of slowing growth in major economies.

The MSCI World Index, which tracks stocks across the developed world, jumped by almost 24% during 2019 – the strongest performance since 2009. A surge in US technology giants and a strong recovery in eurozone and Asian stocks drove the rally.

Continue reading...

Hong Kong recession to continue as protests hit economy – business live

Posted on by

Rolling coverage of the latest economic and financial news

The pick-up in UK mortgage approvals in November is a “significant surprise”, says Howard Archer of the EY Item Club.

He suspects that some home owners may have been keen to move before the general election, as a hung parliament could have created more economic uncertainty in 2020.

Those gains in Hong Kong and China today have lifted Asian stock markets to their highest levels in 18 months today.

Global stock markets have gained another $700bn this week in thin trading on santa rally. All equities now worth $87.1tn, just $200bn shy of a fresh life-time high and equal to 100% of global GDP so stocks have entered bubble territory. pic.twitter.com/JgXmKPDWCN

Continue reading...

FTSE 100 hits five-week high as US-China trade talks end – business live

Posted on by

Hopes of a ceasefire in the trade war between Washington and Beijing are boosting stocks

After three days of gains, Wall Street is expected to rise further when trading begins in under 90 minutes.

US Opening Calls:#DOW 23848 +0.27%#SPX 2579 +0.18%#NASDAQ 6570 +0.27%#IGOpeningCall

Entrepreneur Elon Musk has been doing his bit for US-China relations this week.

“We hope you can get a firm foothold and expand the market.

We hope your company can become an in-depth participant in China’s opening and a promoter of the stability of Chinese-U.S. relations.”

Continue reading...

Apple’s shock profit warning sends Wall Street shares sliding

Posted on by

Firms with exposure to China hit over fears the Silicon Valley giant’s slowdown could spread

Apple’s shock downgrade has sent shares in European and US-listed companies with exposure to China – from Burberry and the Gucci owner, Kering, to chipmakers and miners – tumbling over fears the slowdown that has hit the Silicon Valley giant is set to spread.

In New York the Dow Industrial Average fell over 2% in morning trading and all the major markets suffered sharp losses as investors reacted to the Apple news, reports of a slowdown in US factory activity and an ongoing government shutdown over the funding of Donald Trump’s proposed border wall with Mexico.

Continue reading...

Stocks start 2019 in retreat as China factory output shrinks – business live

Posted on by

Chinese manufacturing sector declines for first time in 19 months amid new year global growth concerns

UK manufacturing activity came in significantly higher than expected at the end of 2018 thanks in part to a steep rise in stockpiling ahead of Brexit, according to a closely followed survey.

The manufacturing purchasing managers index rose to 54.2 in December, up from 53.1 in November, data firm IHS Markit reported. Economists had expected a slowdown to 52.5.

The rise in the PMI level during December was mainly driven by stronger inflows of new business and a solid increase in stocks of purchases. Movements in both mainly reflected Brexit preparations by manufacturers and their clients.

The European Central Bank has been busy celebrating 20 years of the euro this new year, but today it was forced to announce less pleasant news: Italian lender Banca Carige has been put in administration.

Continue reading...