Written by Gary
US stock markets are set to open lower this morning (SPY -0.6%), after hitting a one-month low in yesterday’s session.
Here is the current market situation from CNN Money | |
European markets are sharply lower today with shares in London off the most. The FTSE 100 is down 2.24% while France’s CAC 40 is off 1.74% and Germany’s DAX is lower by 1.34%. |
What Is Moving the Markets
Here are the headlines moving the markets. | |
Oil steadies amid fall in U.S. inventories, weak economic dataOil steadied on Wednesday, following several days of declines, after industry data showed a surprise drop in U.S. crude inventories, although gains were capped as weak economic readings in the United States depressed global markets. | |
Stocks fall to lowest in a month after U.S. manufacturing shock sparks growth worriesA major global share index hit its lowest level in a month on Wednesday on fears the fallout from the U.S.-China trade war is spreading to the U.S. economy and could further hurt global growth. | |
WTO to back U.S. tariffs on Europe in clash over Airbus subsidiesThe World Trade Organization was poised on Wednesday to open the door to hefty U.S. tariffs on European goods over illegal subsidies for Airbus, pushing a 15-year-old row over support for plane giants to the center of fraught global trade relations. | |
Wall Street set to open lower as manufacturing shock drags onWall Street’s main indexes were set to open lower on Wednesday, after hitting a one-month low in the previous session, as a shock contraction in manufacturing activity confirmed the domestic economy was feeling the burn from a prolonged U.S.-China trade war. | |
Timeline: Highlights of the 15-year Airbus, Boeing trade warThe World Trade Organization is poised on Wednesday to open the door to hefty U.S. tariffs on European goods over illegal subsidies for Airbus, pushing a 15-year-old row over support for plane giants to the center of fraught global trade relations. | |
Explainer: The jet subsidy row that threatens transatlantic trade warThe United States will learn on Wednesday the annual value of European Union goods it is allowed to target with tariffs as part of a 15-year-old dispute at the World Trade Organization over illegal subsidies to the world’s largest planemakers. | |
Samsung ends mobile phone production in ChinaSamsung Electronics Co Ltd has ended mobile telephone production in China, it said on Wednesday, hurt by intensifying competition from domestic rivals in the world’s biggest smartphone market. | |
WeWork Japan gets new CEO, days after We Company founder quitsWeWork Japan on Wednesday named a new head of local operations, just days after the co-founder of the We Company stepped down following a botched attempt to gain a stock market listing. | |
Paddy Power and Poker Stars owners to create online gambling leaderThe owner of Paddy Power Betfair has agreed to buy the company behind Poker Stars in a $6 billion share deal to create the world’s largest online betting and gambling company by revenue, seeking to take advantage of the opening up of U.S. markets. | |
“It’s A Wacky Race To The Bottom… And The US Is Losing Badly”“It’s A Wacky Race To The Bottom… And The US Is Losing Badly” Submitted by Michael Every of Rabobank Wacky races to the bottom In monetary policy terms, this is now clearly a race to the bottom. The Fed have cut twice, and Evans’s comments from yesterday aside, are expected to cut far more (we say to zero); the ECB have reintroduced QE already, at EUR20bn a month for now; the BOJ are expected to stir at this month’s meeting; the PBOC are pledging to do what they can to get rates lower for firms; the RBNZ surprised a while back with a 50bp cut; and the RBA cut 25bp again to 0.75% yesterday, partly on the basis that ‘everyone else is doing it so how can we not?’ Moreover, that’s just a sample of broader trend to slash rates, which also runs right across emerging markets too. Crucially, the US is losing this race, and badly. The Fed is hardly a leader in this rate cycle, and more likely to be a laggard as things stand. Cue yet more withering commentary from US President Trump about that relative lack of action and the impact it is having on the USD. Meanwhile, EUR and AUD, for example, are heading downwards at a pace that their respective central banks will be quite pleased about. Just don’t call it a race to the bottom, because that triggers nasty memories of periods of history that markets and politicians don’t like to recall. In no way a coincidence, it’s also a race to the bottom in manufacturing PMIs. Over in the workshop of the world, China is at 49.8, which is bad; Japan at 48.9; South Korea at 48.0; and only India at 51.4 and booming Vietnam at 50.5. In Europe we have Ger … | |
ADP Employment Disappoints, Suffers Drastic Downward RevisionsADP Employment Disappoints, Suffers Drastic Downward Revisions After May’s collapse, ADP employment gains have rebounded notably but were expected to slow once again in September (which makes some sense given the collapse in ISM/PMI employment indices). But things were considerably worse – not only did September’s data miss (+135k vs +145k exp) but Augusts’s big jump of 195k was revised drastically lower to just 157k. | |
UBS Chief Economist Paul Donovan Resumes Publication After “Chinese Pig” ScandalUBS Chief Economist Paul Donovan Resumes Publication After “Chinese Pig” Scandal Nearly four months after UBS chief economist Paul Donovan published a rather off-color, if hardly ill-meaning and career-ending joke about “Chinese pigs” which forced his employer to put his daily notes on hold following some high profile complaints from Beijing, the UBS strategist is back with his first note since June 12. As a reminder, Donovan set off a scandal during a discussion of Chinese consumer prices, which had risen because a pig virus drove up pork costs. The situation mattered, he said, œif you are a Chinese pig. It matters if you like eating pork in China.
A particularly nosy Chinese twitter commentator quickly condemned the first remark, interpreting it as a derogatory reference to local people rather than to ill swine, which then escalated to the highest levels and forced UBS to shelve Donovan for a few months. So, without further ado, here is his just published bulletin, whose dry hu … | |
Global Stocks Tumble, Futures Slide To One Month Low As Recession Fears RiseGlobal Stocks Tumble, Futures Slide To One Month Low As Recession Fears Rise Global markets slumped, S&P futures dropped and European bourses tumbled as the MSCI world index dipped 0.3% to its lowest since Sept. 5, after shedding 0.83% in the previous session, after the US manufacturing ISM tumbled to more than a decade low, sparking worries a recession may now be unavoidable as the fallout from the U.S.-China trade war spreads to the U.S. economy, whose slowdown would remove the last remaining bright spot in the global economy just as Europe is falling back into recession. | |
Deepak Parekh on the $93 billion ‘goldmine’ India shouldn’t ignoreDeepak Parekh on the $93 billion ‘goldmine’ India shouldn’t ignoreReal estate will do well with “right developers, right pricing & right unit size”, thinks Deepak Parekh. | |
Govt’s Rs 90k cr plan to fund FM’s giveawaysGovt’s Rs 90k cr plan to fund FM’s giveawaysThe plan envisages monetisation of assets worth Rs 15,000 cr in aviation & Rs 22,000 cr of railways. | |
Can China help India power-up its EV drive?Can China help India power-up its EV drive?China controls the supply of major chunk of raw materials needed for making the battery used in e- cars. | |
Beat the System: Meet the quiet Christian money manager who’s comfortably beating the marketMark Mulholland tells MarketWatch he set up a mutual fund, Matthew 25, after a homeless man quoted a section of that gospel from the bible. | |
The cities have the highest job and wage growth in AmericaA new Glassdoor analysis is based on millions of online jobs and salaries in major metro areas across the U.S. | |
Nearly half of women who have abortions live below the federal poverty levelOn Tuesday, a federal judge temporarily blocked lawmakers in Georgia from enacting legislation that would have made abortions in that state more restrictive. |
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