Fears that global economic weakness will affect US market & Crude Oil hits 4 year low
October 14, 2014 7:14 am
Further turmoil for the markets yesterday following worries that global economic weakness will dampen US earnings and the threat of Ebola reaching Europeans shores caused the SP500 to drop more 1% closing at 1874.74. The Dow dropped by 223 points closing at 16321. The Nikkei also slipped to a two month low. The greenback strengthened slight against the yen but remained close to its one month low hit earlier in yesterday’s session. The Euro was holding firm at $1.2737 after rallying nearly 1% overnight. A rise above $1.2797 would launch the currency into a three week high. The dollars Aussie counterpart dipped 0.2 percent to $0.8752 as the region’s equity markets fell and sapped risk aversion. In the commodities space crude oil is once again in focus as the prices danced around four year lows, weighed by global demand concerns and by signals from key Middle East producers that they plan to keep output high despite the latest shakeout in prices. Burberry is currently trading down around 5%. The group posted a 15% rise in FH revenue but has been hit by unfavourable FX headwinds. Hargreaves Lansdown also reported figures, assets under administration rose to a record £47b pounds in the September quarter, boosted by a near £1b rise in net new money. Today at 9.30am the markets see the release of UK CPI data expected to come in at 1.4% vs 1.5% previous.
Further turmoil for the markets yesterday following worries that global economic weakness will dampen US earnings and the threat of Ebola reaching Europeans shores caused the SP500 to drop more 1% closing at 1874.74. The Dow dropped by 223 points closing at 16321. The Nikkei also slipped to a two month low.
The greenback strengthened slight against the yen but remained close to its one month low hit earlier in yesterday’s session. The Euro was holding firm at $1.2737 after rallying nearly 1% overnight. A rise above $1.2797 would launch the currency into a three week high. The dollars Aussie counterpart dipped 0.2 percent to $0.8752 as the region’s equity markets fell and sapped risk aversion.
In the commodities space crude oil is once again in focus as the prices danced around four year lows, weighed by global demand concerns and by signals from key Middle East producers that they plan to keep output high despite the latest shakeout in prices.
Burberry is currently trading down around 5%. The group posted a 15% rise in FH revenue but has been hit by unfavourable FX headwinds. Hargreaves Lansdown also reported figures, assets under administration rose to a record £47b pounds in the September quarter, boosted by a near £1b rise in net new money.
Today at 9.30am the markets see the release of UK CPI data expected to come in at 1.4% vs 1.5% previous.
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