Share

Global stocks battered as markets face more uncertainty

New York - Another day of bad news buffeted global equities on Wednesday, sending major indices lower in Asia, Europe and New York.

Wall Street attempted a rally following favorable US inflation numbers but it fizzled as markets were easily upset by a string of worrisome reports.

Analysts continued to downgrade Apple, a bellwether stock for the tech sector, on fears of weak demand for iPhones.

Meanwhile in Washington, a senior Democratic legislator warned the days of soft-touch oversight of financial regulators were coming to an end - helping drive major bank shares into the red.

Negative economic data from Japan and Germany and turmoil surrounding the conclusion of Brexit talks added to volatility.

All three major US indices hit their lowest levels since late October, with the benchmark Dow Jones Industrial Average down for the fourth straight day - its longest losing streak since August.

"What is really bothering the market is the worry we are in the late stages of the economy's growth and that you are doing that at a time when international growth is slowing," Karl Haeling of LBBW told AFP.

Worries about what Trump will do next in the US-China trade war also dampened investor appetite, he added.

European equity markets ended a volatile session lower, as the pound sterling gained on hopes of some kind of Brexit deal, dealers said.

The pound had a rollercoaster day as British Prime Minister Theresa May worked to defend her divorce deal with the EU before rowdy lawmakers.

She later won the support of her splintered cabinet, and anticipation of her remarks shortly after markets closed pushed the currency firmly into positive territory.

 'Hot tin roof'

"The pound is behaving like a cat on a hot tin roof," said David Lamb, head of dealing at Fexco Corporate Payments, as the British currency flitted between gains and losses over the day.

Eurozone stocks meanwhile suffered from a damaging standoff between Italy and the EU over Rome's budget as well as skepticism surrounding Brexit.

"Uncertainty around Italy and Brexit are weighing on sentiment," said CMC Markets analyst David Madden.

Italy's populist government defied the European Commission by sticking to a big-spending budget plan, risking financial sanctions in a high-stakes standoff that could spell fresh trouble for the eurozone.

Oil prices, meanwhile, clawed back some of the sharp losses this week seen on oversupply fears just as demand falters in the face of the China-US trade war and easing economic growth.

However, prices are still down from their four-year highs seen in early October.

"The dramatic selling across the oil markets in recent days has come to a brief pause," said Jameel Ahmad, head of market research at FXTM, "but many remain stunned by the acceleration in aggressive momentum that has transpired over the past couple of sessions."

Energy giant Russia, which has been cooperating with OPEC on production cuts, said on Wednesday it had agreed with the cartel's members to keep a close eye on the oil market at a meeting in Abu Dhabi at the weekend.

"We agreed to monitor the market in November," Russia's Energy Minister Alexander Novak said on the margins of an ASEAN meeting in Singapore.

"We have the necessary tools to deal with any signs of a serious crisis," he said, according to the RIA news agency.


* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.89
+0.2%
Rand - Pound
23.84
+0.3%
Rand - Euro
20.36
+0.4%
Rand - Aus dollar
12.30
+0.3%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders