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Market turmoil: Japanese Nikkei plunges 5% as rout continues - business live

Discussion in 'Market News' started by Lily, Feb 9, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
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    Rolling coverage of the world economy and the financial markets, as fear grips the City again

    8.58am GMT

    European banks are coming under the cosh this morning, as investors anticipate further problems ahead.

    The Stoxx 600 Banks index, which tracks financial stocks across Europe, has fallen by 1.7% already today. That follows a 5.6% fall yesterday.

    8.39am GMT

    Mining stocks are taking a hammering this morning, dragging the Footsie into the red again:

    8.29am GMT

    That positive London open didn’t last long. The FTSE is now down 15 points.....

    Blink and you miss it - from a positive open FTSE now in negative territory...

    8.21am GMT

    Shares in Deutsche Bank have risen by 2%, as investors gingerly return to the Frankfurt trading floor.

    Deutsche plunged by 9% yesterday, prompting the bank to insist last night that it can meet an April repayment on its riskiest bonds.

    Top tip:
    BANKS: Boost your share price by reminding people that you are solvent https://t.co/RCuPKTl6uo

    8.16am GMT

    European stock markets are open....and staggering back from yesterday’s turmoil.

    8.09am GMT

    Traders on the Philippine Stock Exchange had an interesting day -- a crowd of lion dancers and dragons popped in, to celebrate the Lunar New Year.

    8.01am GMT

    We have bad news from Germany -- industrial production at the eurozone’s powerhouse economy tumbled by 1.2% in December.

    That’s much worse than expected; economists had pencilled in a 0.4% rise in factory output. It suggest the slowdown in emerging markets is now hitting Europe, threatening its fragile recovery since the eurozone crisis.

    Crisis, here it comes. German industrial production drops by 1.2% MoM in December.

    While the industry had been able to stomach the cooling of the Chinese economy, the slowdown of emerging markets, the euro crisis and geopolitical risks, it now seems as if extremely low oil prices and the slowdown of the US economy are simply two risks too much for the industry.

    Watch German sentiment in the next few months -- mounting potential for feed-through from external-sector worries to household wariness.

    7.53am GMT

    In another alarming development, the yield (interest rate) on Japanese 10-year government bonds has turned negative for the first time.

    That means investors are prepared to pay Tokyo for the privilege of lending to it for the next decade.

    7.41am GMT

    Japanese manufacturers were also hit hard today, as the yen strengthened against the US dollar (hurting exporters).

    Car makers were singled out - with Honda falling by 6.4%, Nissan losing 6.8% and Toyota dropped 5.9%.

    7.37am GMT

    Kaneo Ogino, director at foreign exchange research firm Global-info Co in Tokyo, says there was a “panic situation” in Asian markets today.

    Related: 'Panic situation': Asian stocks tumble amid fears of new global recession

    7.28am GMT

    Fears of a global recession have sparked a wild selloff in Japan today.

    After plunging through the day, the benchmark Nikkei index has closed down 5.5% in a wave of panicky selling.

    “Sentiment towards risk assets remained extremely bearish and price action reflected a market that may be capitulating.”

    With China closed for New Year, global equity rout continues in Japan. Banks are clattered over credit concerns - ASX -2.73%, Nikkei -5.14%

    There is huge demand for portfolio protection in all asset classes and it just doesn’t feel like we are going to see a major turn anytime soon.

    One can then do a sense check as to what will effectively turn this juggernaut of pain around and this is not a question that is readily answered.

    no industry spared...Banks, Media stocks hurting most in Japan #Stocks trading pic.twitter.com/68MHyyEob7

    7.13am GMT

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

    No prizes for guessing what we’ll be covering today.

    Most European markets called to open down by between 0.2% and 0.4%. #FTSE100 expected to open at around 5675.

    If investors were hoping for a quiet week away from concerns about China with Chinese markets closed for Chinese New Year, they got a very rude awakening yesterday as stock markets sold off hard, and there was no respite in Asia markets either despite a late rebound off the lows in the US and as such we could well see European markets open lower today.

    The catalyst appeared to come from the European banking sector as screens flashed red across the board in scenes of total carnage, with equity markets selling off hard across the board over concerns about the future profitability of the whole sector, in an era where interest rates look set to go further into negative territory.

    Tuesday's Guardian:
    Warning of tax rises as market turmoil hits Osborne budget#tomorrowspaperstoday #bbcpapers pic.twitter.com/d1RxH2Ycly

    Continue reading...

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