Declining trends for US Stocks, Brent oil, China’s services sector & UK Prices
October 8, 2014 7:27 am
U.S. stocks ended sharply lower on Tuesday, with major indexes falling 1 percent in heavy trading, as weak data out of Germany raised concerns about the strength of global growth ahead of the start of earnings season. The Dow fell 272 points to close at 16719 whilst the SP500 lost 29 points to close 1935, closing at its lowest level since August the 12th. Asian share markets were mostly in the red on Wednesday as worries about waning global growth lifted safe-haven bonds, while shoving oil prices to their lowest in more than two years.
Extending a three-month-long decline, Brent oil sank $1.18 to $90.93 a barrel U.S. crude tumbled $1.07 to $87.78. The protracted slide should be a windfall for consumer spending power, but is also a powerful force for disinflation in much of the developed world.
In the FX space the dollar crept up to 108.40 yen, having been as low as 107.75 at one stage. It touched a six-year high of 110.09 just a week ago. Its Australian peer fetched $0.8774, well off Friday’s four-year low of $0.8642. The short squeeze in the Aussie came even after the Reserve Bank of Australia said on Tuesday the level of the currency was still historically high despite its 6.3 percent drop against the greenback in September. The euro stalled at $1.2635, after its bounce fizzled out around $1.2683.
Within the equities space Debt-laden iron ore miner London Mining Plc warned that there would be little or no value remaining in its shares and other securities under the currently proposed structure, as it talks with potential strategic investors. Telecom operator Swisscom is considering a possible sale of its Italian broadband firm Fastweb, which is worth up to 5 billion Euros ($6.3 billion) and has been a target for Vodafone. Global miner Anglo American is planning to initiate the sale of its three smallest copper mines in Chile and a smelter worth $1 billion by end of the year, Bloomberg reported, citing sources familiar with the matter.
Today Growth in China’s services sector weakened slightly in September as new business cooled, a private survey showed on Wednesday, reinforcing signs of a slowdown in the world’s second-largest economy that could prompt more stimulus measures. In the UK Prices in British shops fell last month at a faster pace, driven down by a steep decline in prices for non-food products, the British Retail Consortium said on Wednesday.
U.S. stocks ended sharply lower on Tuesday, with major indexes falling 1 percent in heavy trading, as weak data out of Germany raised concerns about the strength of global growth ahead of the start of earnings season. The Dow fell 272 points to close at 16719 whilst the SP500 lost 29 points to close 1935, closing at its lowest level since August the 12th. Asian share markets were mostly in the red on Wednesday as worries about waning global growth lifted safe-haven bonds, while shoving oil prices to their lowest in more than two years.
Extending a three-month-long decline, Brent oil sank $1.18 to $90.93 a barrel U.S. crude tumbled $1.07 to $87.78. The protracted slide should be a windfall for consumer spending power, but is also a powerful force for disinflation in much of the developed world.
In the FX space the dollar crept up to 108.40 yen, having been as low as 107.75 at one stage. It touched a six-year high of 110.09 just a week ago. Its Australian peer fetched $0.8774, well off Friday’s four-year low of $0.8642. The short squeeze in the Aussie came even after the Reserve Bank of Australia said on Tuesday the level of the currency was still historically high despite its 6.3 percent drop against the greenback in September. The euro stalled at $1.2635, after its bounce fizzled out around $1.2683.
Within the equities space Debt-laden iron ore miner London Mining Plc warned that there would be little or no value remaining in its shares and other securities under the currently proposed structure, as it talks with potential strategic investors. Telecom operator Swisscom is considering a possible sale of its Italian broadband firm Fastweb, which is worth up to 5 billion Euros ($6.3 billion) and has been a target for Vodafone. Global miner Anglo American is planning to initiate the sale of its three smallest copper mines in Chile and a smelter worth $1 billion by end of the year, Bloomberg reported, citing sources familiar with the matter.
Today Growth in China’s services sector weakened slightly in September as new business cooled, a private survey showed on Wednesday, reinforcing signs of a slowdown in the world’s second-largest economy that could prompt more stimulus measures. In the UK Prices in British shops fell last month at a faster pace, driven down by a steep decline in prices for non-food products, the British Retail Consortium said on Wednesday.
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