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Market turmoil: Australia enters bear territory as rout continues - business live

Discussion in 'Market News' started by Lily, Feb 10, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
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    Asia-Pacific stocks market have suffered another rout as fears grow over the global economy and the banks

    8.48am GMT

    Australia’s fall into bear market territory today has sent another cloud of gloom over the City of London.

    Conner Campbell of SpreadEx sums up the mood:

    Once again the European indices are enduring the aftermath of a rocky Asian session, the Nikkei plunging to a 16 month low following a 2nd day of heavy losses, with the added concern of a bear market-entering night for the Australian markets thrown in for good measure.

    A red-washed commodity sector is dragging the index down at the moment, though if Brent Crude can see a sustained climb above $31 per barrel (with the US crude inventories arriving this afternoon) sentiment may be able to shift as the day goes on.

    8.36am GMT

    Danish shipping and oil conglomerate A.P. Moller–Maersk is getting a kicking.

    The perfect storm for shipping & #oil company AP Moeller-Maersk. Profits slump 38%, warns even worse 2016 .

    8.22am GMT

    Shares in Deutsche Bank have jumped by over 4% at the start of trading, amid rumours that it is planning new steps to reassure investors about its financial health.

    The Financial Times set the hare running last night, reporting that:

    Deutsche Bank is considering buying back several billion euros of its debt, as Germany’s biggest bank steps up efforts to shore up the tumbling value of its securities against the backdrop of a broader rout of financial stocks.

    After European banks suffered a second consecutive day of sharp falls, Deutsche Bank is expected to focus its emergency buyback plan on senior bonds, of which it has about €50bn in issue, according to the bank.

    8.16am GMT

    European stock markets are crawling higher in early trading, after two days of hefty falls.

    Once again the FTSE-100 has kicked off the session with a modest bounce, recovering some of yesterday’s gains in the process, but the underlying situation appears little changed.

    Crude oil prices may be ticking higher but they are still in what could be termed ‘distressed’ territory below $30/barrel, although despite all this there’s a definite air of risk-on returning to markets.

    8.04am GMT

    Japan’s stock market also had a rough day, losing another 2.3% and sending the Nikkei to a fresh 16-month low.

    One analyst said markets could be seeing the start of the “final capitulation” as the attempt by central banks to stimulate growth with cheap money since the global financial crisis in 2008 had run its course.

    “The artificial support from central banks is at a crossroads,” said Evan Lucas, of IG in Melbourne. “Central bank intervention will no longer create the holding pattern of the past year; markets now believe banks are out of ammunition.”

    Related: Stock market rout intensifies amid fears central banks are 'out of ammunition'

    7.55am GMT

    The heavy falls on the Australian stock market has triggered fears that we’re entering another GFC, or Global Financial Crisis.

    ABC News explains:

    Stockbroker and author of Marcus Today, Marcus Padley, holds the view that this week’s Australian bank sell-off is more about fear than reality.

    “There is fundamentals and there is sentiment, and people are very fearful of another GFC-style event,” he told ABC News Online.

    7.51am GMT

    Australia’s stock market has been dragged into bear market territory as the the global market rout hit Asia again.

    The country’s benchmark index, the S&P/ASX 200, endured a rough day and finished down 1.2% at 4775.7 points.

    Top Asian economies now in bear market. Australia ASX down 20% from peak. Japan Nikkei down 25% from peak.

    Australia's shares close in bear territory ... ...but is it a buy opp? https://t.co/9LUF4nxqkX pic.twitter.com/RymgIJOqu4

    Persistent fears about slowing global growth and the Chinese economy, the health of Europe’s banking sector and concerns that Beijing and major central banks might not be able to turn things around have combined to rattle investors.

    “What’s the scary part about this is we can see things get pretty ugly, pretty quickly,” said Evan Lucas, market strategist at IG in Melbourne.

    7.39am GMT

    Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

    Hold onto your hats, because it’s going to be another stressful day in the financial world.

    Related: Shares dive as fears mount for health of global banking

    Dare I say #FTSE and #DAX called to open fairly flat at present.

    Eyes on the Feds Yellen testimony this afternoon.

    U.K. Companies posting results today - Tullow Oil, Dunelm, BELLWAY, WS Atkins ARM Holdings, GW Pharma - US - Twitter, Expedia, Zynga, Humana

    Continue reading...

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