Stock markets bounced higher on Wednesday, bringing some relief after a brutal October in which equities have suffered one of their worst drops in a decade and spooked investor confidence.
Sino-U.S. trade tensions, concerns about global growth and higher U.S. interest rates and fears that corporate earnings are peaking have combined to shake financial markets in October, leaving most major markets in negative territory for the year.
That has spurred predictions that an almost decade-long bull-market has run its course.
Data overnight showing that China’s factory growth slowed to its lowest in two years has reinforced worries about weakening growth stemming from the trade conflict with the United States, and followed disappointing euro zone growth data published on Tuesday.
Investors rushed into the dollar, sending it to a 16-month high while the offshore Chinese yuan was left to nurse another 22-month low.
A batch of positive earnings set a firmer tone for European stocks on Wednesday, although pan-European indexes are headed for their weakest month since August 2015.
The leading euro zone stock index was up 1.5 percent in early trading, with the pan-European STOXX 600 up 1.4 percent and Germany’s DAX up 1.3 percent. Britain’s FTSE 100 increased 1.4 percent.
The gains follow Asia, where the MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.4 percent, drawing support from gains on Wall Street.
The MSCI world equity index, which tracks shares in 47 countries, rose 0.6 percent but remains down 8.2 percent in October, its worst month since 2012.
The index is down 13 percent from all-time highs hit in January.
“Ultimately I’m still of the belief that we are in for more downside and rallies are for selling, but squeezes in bear markets are not normally comfortable affairs,” said Neil Campling, co-head of the global thematic group at Mirabaud Securities.
“I think a 2-3 day battle toward the top of the downtrend. Then we can return to the bigger picture – the mid-terms (U.S. elections), trade wars, rates etc. Once a few shorts have been taken out of the tape.”
Fresh concerns over growth in Asia and the euro zone come as the U.S. economy continues to look in healthier shape, spurring fresh demand for the dollar.
The greenback, measured against a basket of currencies, scaled a fresh 2018 peak on Wednesday, while the euro labored near $1.1352, recovering slightly from losses earlier in the week.
“Euro zone growth figures have been disappointing and the Bank of Japan is striking a dovish stance at a policy meeting today so there is more room for the dollar to gain from current levels,” said Paul Bednarczyk, director of G10 FX at Continuum Economics based in London.
China’s offshore yuan fell to a fresh 22-month low of 6.9795. In onshore markets it was flat at 6.9673 per dollar but remained near a decade low brushed on Tuesday.
The Chinese currency was on track for a loss of 1.4 percent in October, its seventh straight monthly loss, the longest such losing streak on record. CNY/
The Australian dollar fell 0.3 percent while the Japanese yen was flat at 113.12 versus the dollar, a three-week low.
Oil prices recovered as markets braced for the imposition of U.S. sanctions on Iran next week, after dropping to multi-month lows the previous day.
U.S. crude futures rose 0.92 percent to $66.79 per barrel after dropping to $65.33 on Tuesday, the lowest since mid-August.
Brent crude gained 1.11 percent to $76.75 after a decline of 1.8 percent on Tuesday.
For Reuters Live Markets blog on European and UK stock markets open a news window on Reuters Eikon by pressing F9 and type in ‘Live Markets’ in the search bar.
Brexit Will Not Happen Next Week
Brexit will not happen next week. The United Kingdom has been granted a bit more time to figure out the terms of its departure from the European trading bloc. The date could be April the twelfth or may the twenty-second.
European Council President, Donald Tusk, says he would push the departure date to May the twenty-second if the UK parliament approves a withdrawal agreement next week.
Parliament’s failure to approve the Brexit deal next week would mean deadline for departure from the European Union will be April the twelfth.
The decision to grant the delay came a day after may delivered a televised speech blaming parliament for the Brexit impasse. That speech angered the political spectrum.
May hopes with this European Council next decision, the House of Commons would pass a Brexit deal next week. She says that would help bring an end to the uncertainty and would help the UK to leave Europe in a smooth and orderly manner.
Chemical Factory Explosion In China Kills 47, Injures Over 600
An explosion at a chemical plant that occurred on Thursday in China’s eastern Jiangsu province has killed 47 people and injured over 600, among which 90 are critically injured, state media reported.
The fire which happened at a plant that contained highly inflammable chemical owned by the Tianjiayi Chemical Company spread to neighbouring factories was finally brought under control at 3.00 a.m. on Friday.
President Xi Jinping, who is in Italy on a state visit, ordered all-out efforts to care for the injured and to “earnestly maintain social stability”, state television said.
Reuters disclosed that some police at the scene were wearing face masks, sealed off roads to the plant. The blast smashed windows in the village of Wangshang two kilometres (1.2 miles) away, and shocked villagers likened it to an earthquake.
New Zealand Bans Sale Of Assault Rifles, Semi-Automatic Weapons
New Zealand has banned the sale of assault rifles and semi-automatic weapons after the country’s worst-ever attack in which fifty persons were killed in two mosques.
Prime Minister Jacinda Ardern told a news conference the ban is in the national interest and it’s about safety… To prevent an act of terror from ever happening again in New Zealand.
Ardern said she expects the new law to be in place by mid-April. Buy-back schemes will be established for banned weapons.
Ardern said the suspect arrested in the attacks had purchased his weapons legally and enhanced their capacity by using 30-round magazines “done easily through a simple online purchase.”
The changes in New Zealand’s gun laws are expected to curtail future acts of random violence like the mass mosques shootings in Christchurch.
- AFCON Qualifier: Super Eagles Beat Seychelles 3-1 March 22, 2019
- FIFA Bans Togolese Referee For Life Over Corruption Charges March 22, 2019
- Brexit Will Not Happen Next Week March 22, 2019
- Chemical Factory Explosion In China Kills 47, Injures Over 600 March 22, 2019
- JUST IN: Tribunal Declares Ademola Adeleke Winner Of Osun Governorship Election March 22, 2019
African News6 days ago
140 Dead, Hundreds Missing As Cyclone Idal Leaves Trail Of Destruction In Zimbabwe, Mozambique
African News3 days ago
Equatorial Guinea, Rights Group Express Dismay Over Switzerland’s Decision To Return Seized Yacht
African News6 days ago
30 Killed In Angola Mine Collapse
World News5 days ago
UPDATES: Dutch Police Arrest Suspect In Deadly Tram Shooting
African News4 days ago
Cameroon Protests US Interference During Nagy Visit
African News4 days ago
Five Miners Shot In Ethiopia, Including Two Foreigners Says TV
African News4 days ago
UAE, Sweden Pledge Emergency Aid To Cyclone Idai Affected Countries
African News5 days ago
Roadside Bombs Kill Five Burkina Faso Security Forces