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| Version 40 | Version 41 |
|---|---|
| US markets down at closing bell after midday rally as China woes continue – as it happened | US markets down at closing bell after midday rally as China woes continue – as it happened |
| (21 days later) | |
| 1.37am BST | 1.37am BST |
| 01:37 | 01:37 |
| You can follow our new live blog here, as Asian markets open on Wednesday: | You can follow our new live blog here, as Asian markets open on Wednesday: |
| Related: Asian markets open with investors on edge after Dow extends losses – live | Related: Asian markets open with investors on edge after Dow extends losses – live |
| 9.31pm BST | 9.31pm BST |
| 21:31 | 21:31 |
| Rebound that took the Dow up more than 440 points disappeared http://t.co/C7FLd9Jlqa pic.twitter.com/CX0tHSydqp | Rebound that took the Dow up more than 440 points disappeared http://t.co/C7FLd9Jlqa pic.twitter.com/CX0tHSydqp |
| The outcome of Tuesday’s abortive US market rebound looked a lot like Monday’s panicky back-and-forth, but with less drama: | The outcome of Tuesday’s abortive US market rebound looked a lot like Monday’s panicky back-and-forth, but with less drama: |
| This time, the major indexes opened down, spent the day solidly up with a few hiccups here and there, and then abruptly plummeted starting at 3 pm Eastern without stopping until the bell. | This time, the major indexes opened down, spent the day solidly up with a few hiccups here and there, and then abruptly plummeted starting at 3 pm Eastern without stopping until the bell. |
| Here’s our US business editor Dominic Rushe talking to Ken Goldstein, economist at the Conference Board, on the decline: | Here’s our US business editor Dominic Rushe talking to Ken Goldstein, economist at the Conference Board, on the decline: |
| “Somebody woke up last Thursday and headed for the exit and a stampede was on. Now they are back again,” said Goldstein. “It doesn’t say much about our financial geniuses.” | “Somebody woke up last Thursday and headed for the exit and a stampede was on. Now they are back again,” said Goldstein. “It doesn’t say much about our financial geniuses.” |
| Goldstein said consumers could be affected by the stock market wobble, which could trigger a lack of confidence ahead of the all-important holiday season despite relatively good economic data on housing, jobs and manufacturing. “The more we scare the bejeezus out of the consumer, the more risk we face,” he said. | Goldstein said consumers could be affected by the stock market wobble, which could trigger a lack of confidence ahead of the all-important holiday season despite relatively good economic data on housing, jobs and manufacturing. “The more we scare the bejeezus out of the consumer, the more risk we face,” he said. |
| The morning rise comes after three days of falls on stock markets around the world that erased close to $3tn globally. | The morning rise comes after three days of falls on stock markets around the world that erased close to $3tn globally. |
| It was universally hoped that Monday’s falloff was simply an adjustment to declining fortunes in China, but with two days down, American markets and Chinese misfortune would seem to be linked more closely than many had hoped. | It was universally hoped that Monday’s falloff was simply an adjustment to declining fortunes in China, but with two days down, American markets and Chinese misfortune would seem to be linked more closely than many had hoped. |
| This blog is wrapping up for the day, but our colleagues in Australia will be back for the open of the Chinese markets. Read our complete report on the abrupt reversal of fortune in the US financial world here. | This blog is wrapping up for the day, but our colleagues in Australia will be back for the open of the Chinese markets. Read our complete report on the abrupt reversal of fortune in the US financial world here. |
| Updated | Updated |
| at 9.35pm BST | at 9.35pm BST |
| 9.03pm BST | 9.03pm BST |
| 21:03 | 21:03 |
| The Nasdaq, the Dow and the S&P 500 are all down the at closing bell | The Nasdaq, the Dow and the S&P 500 are all down the at closing bell |
| Updated | Updated |
| at 9.09pm BST | at 9.09pm BST |
| 8.51pm BST | 8.51pm BST |
| 20:51 | 20:51 |
| US markets have lost almost everything gained today | US markets have lost almost everything gained today |
| The Dow and the S&P 500 have not had a good hour. After a day’s worth of upward-trending trading, the market is looking a great deal like it will close right back down where it started in a few minutes - and it ended yesterday very low. | The Dow and the S&P 500 have not had a good hour. After a day’s worth of upward-trending trading, the market is looking a great deal like it will close right back down where it started in a few minutes - and it ended yesterday very low. |
| Leading the charge downward in the Dow is major pharmaceuticals company Merck, off by more than 4.3%, with Verizon (down about 1.6%), another pharma company, Pfizer (down 1.8%), and Microsoft (down nearly 2%). Credit card giant American Express is down 1.65% today thus far and off by more than 21.09% year-to-date. | Leading the charge downward in the Dow is major pharmaceuticals company Merck, off by more than 4.3%, with Verizon (down about 1.6%), another pharma company, Pfizer (down 1.8%), and Microsoft (down nearly 2%). Credit card giant American Express is down 1.65% today thus far and off by more than 21.09% year-to-date. |
| The NASDAQ is still barely above sea level, up by 0.07%. | The NASDAQ is still barely above sea level, up by 0.07%. |
| Updated | Updated |
| at 9.05pm BST | at 9.05pm BST |
| 8.30pm BST | 8.30pm BST |
| 20:30 | 20:30 |
| Here is a term folks are likely to be learning for the first time today: “dead cat bounce.” The poor cat mentioned here is being enlivened by speculation after a long fall, but he is not likely to chase any more mice. Another: “stop-loss order,” an order to sell stock “intended to save further loss than has already been incrurred.” | Here is a term folks are likely to be learning for the first time today: “dead cat bounce.” The poor cat mentioned here is being enlivened by speculation after a long fall, but he is not likely to chase any more mice. Another: “stop-loss order,” an order to sell stock “intended to save further loss than has already been incrurred.” |
| Netflix and Hecla Mining are two different dead cats picked by market prognosticators today, but it’s interesting to note a preponderance of clean energy companies on those lists, as well: there are no fewer than three solar-powered felines toe-tagged by the skeptics at The Street. | Netflix and Hecla Mining are two different dead cats picked by market prognosticators today, but it’s interesting to note a preponderance of clean energy companies on those lists, as well: there are no fewer than three solar-powered felines toe-tagged by the skeptics at The Street. |
| Updated | Updated |
| at 10.22pm BST | at 10.22pm BST |
| 8.00pm BST | 8.00pm BST |
| 20:00 | 20:00 |
| RELAX EVERYONE: Stock market has already recovered almost everything lost this morning http://t.co/Svd6McAtoh | RELAX EVERYONE: Stock market has already recovered almost everything lost this morning http://t.co/Svd6McAtoh |
| Everything’s fine. | Everything’s fine. |
| 7.47pm BST | 7.47pm BST |
| 19:47 | 19:47 |
| A Goldman Sachs note dated late yesterday tells everybody to take a deep breath and not worry about a global recession, although the firm isn’t wild about the dollar in 2015. “Within DM [developed markets, as opposed to EM - emerging markets], we have recommended being long Japan and Europe versus the US in local currency terms for most of the year.” | A Goldman Sachs note dated late yesterday tells everybody to take a deep breath and not worry about a global recession, although the firm isn’t wild about the dollar in 2015. “Within DM [developed markets, as opposed to EM - emerging markets], we have recommended being long Japan and Europe versus the US in local currency terms for most of the year.” |
| “Despite the recent escalation of market concerns, our economics team caution against taking too big a global growth signal away from the weakness in China and its impact on commodity market weakness,” wrote a team of researchers led by Peter Oppenheimer. | “Despite the recent escalation of market concerns, our economics team caution against taking too big a global growth signal away from the weakness in China and its impact on commodity market weakness,” wrote a team of researchers led by Peter Oppenheimer. |
| Oppenheimer’s team said they viewed growth in the US and Europe as fundamentally sound, but warned that China might indeed be suffering from longer-term instability. “[T]he risks in China itself, and those directly tied to China, have no doubt risen,” said the Goldman analysts. “In this regard, unlike the US and Europe, China has yet to adjust to make the necessary structural changes to re-balance its economy.” | Oppenheimer’s team said they viewed growth in the US and Europe as fundamentally sound, but warned that China might indeed be suffering from longer-term instability. “[T]he risks in China itself, and those directly tied to China, have no doubt risen,” said the Goldman analysts. “In this regard, unlike the US and Europe, China has yet to adjust to make the necessary structural changes to re-balance its economy.” |
| 7.31pm BST | 7.31pm BST |
| 19:31 | 19:31 |
| An hour and a half to the market close and here’s what the fundamentals look like: off the highs for the day, with the rally running out of steam. | An hour and a half to the market close and here’s what the fundamentals look like: off the highs for the day, with the rally running out of steam. |
| Major overperformers today: | Major overperformers today: |
| Big losers on the market: | Big losers on the market: |
| Updated | Updated |
| at 8.07pm BST | at 8.07pm BST |
| 7.02pm BST | 7.02pm BST |
| 19:02 | 19:02 |
| A lesson from 538: please don’t sell those shares you’ve been holding on to at the first sign of trouble, or your loss will be somebody else’s gain (actually maybe just ignore the whole thing). Case in point: Apple, which, like many other heavy-hitter stocks, traced a crazy-looking mountain range of buys and sells yesterday, closing down against the previous day at $103.15. Today it’s already up 3.95%, and Apple CEO Tim Cook’s mini-editorial on stock price and continuing opportunity in China looks pretty solid. | A lesson from 538: please don’t sell those shares you’ve been holding on to at the first sign of trouble, or your loss will be somebody else’s gain (actually maybe just ignore the whole thing). Case in point: Apple, which, like many other heavy-hitter stocks, traced a crazy-looking mountain range of buys and sells yesterday, closing down against the previous day at $103.15. Today it’s already up 3.95%, and Apple CEO Tim Cook’s mini-editorial on stock price and continuing opportunity in China looks pretty solid. |
| Apple's @tim_cook just e-mailed @jimcramer @CNBC pic.twitter.com/zzEqmDKFUK | Apple's @tim_cook just e-mailed @jimcramer @CNBC pic.twitter.com/zzEqmDKFUK |
| Maarten Hooft of Quest Venture Partners, a Google veteran who specializes in early-stage startup financing, said that he tended to favor the long game: | Maarten Hooft of Quest Venture Partners, a Google veteran who specializes in early-stage startup financing, said that he tended to favor the long game: |
| When people are panicking it’s an interesting time to buy. I very much follow what Warren Buffet advocates, which is ‘buy and hold.’ The average length of time people own their stocks is what, maybe six months? I own mine for years. For me, I’m like, ‘Look, Facebook is still gonna be around. Apple is still gonna be around.’ | When people are panicking it’s an interesting time to buy. I very much follow what Warren Buffet advocates, which is ‘buy and hold.’ The average length of time people own their stocks is what, maybe six months? I own mine for years. For me, I’m like, ‘Look, Facebook is still gonna be around. Apple is still gonna be around.’ |
| Updated | Updated |
| at 7.43pm BST | at 7.43pm BST |
| 6.45pm BST | 6.45pm BST |
| 18:45 | 18:45 |
| Zimbabwean president Robert Mugabe chose Tuesday to make his first public address in eight years saying his nation’s fortunes were tied to China, crisis or no crisis, Reuters is reporting. | Zimbabwean president Robert Mugabe chose Tuesday to make his first public address in eight years saying his nation’s fortunes were tied to China, crisis or no crisis, Reuters is reporting. |
| The government of Zimbabwe is “signing key projects with China, covering energy, railways and telecommunication, water, mining, agriculture, and tourism,” Mugabe told a crowd of both supporters and detractors. | The government of Zimbabwe is “signing key projects with China, covering energy, railways and telecommunication, water, mining, agriculture, and tourism,” Mugabe told a crowd of both supporters and detractors. |
| Chinese financiers have expressed unhappiness with their investments in Africa, the report said, and with many in China far less liquid now than they were a few weeks ago, investments in the developing world could easily land lower on their list of priorities. | Chinese financiers have expressed unhappiness with their investments in Africa, the report said, and with many in China far less liquid now than they were a few weeks ago, investments in the developing world could easily land lower on their list of priorities. |
| 6.19pm BST | 6.19pm BST |
| 18:19 | 18:19 |
| The “rallying” US market only looks impressive if you forget that the selloff has been going on for quite some time. To wit, here’s a one-day graph: | The “rallying” US market only looks impressive if you forget that the selloff has been going on for quite some time. To wit, here’s a one-day graph: |
| And here’s a graph of a little more than a month’s worth of activity: | And here’s a graph of a little more than a month’s worth of activity: |
| A true “rally” from that falloff would be a nearly vertical line. | A true “rally” from that falloff would be a nearly vertical line. |
| 5.44pm BST | 5.44pm BST |
| 17:44 | 17:44 |
| This great time-lapse of the Dow shows yesterday (on the left) against today (on the right): Monday’s market jerked back and forth all morning before settling down, while today it held fairly steady up about 300 points until a recent spike. The market was briefly up far enough to put the points gains in the top 10 (see below) ... but not any more. | This great time-lapse of the Dow shows yesterday (on the left) against today (on the right): Monday’s market jerked back and forth all morning before settling down, while today it held fairly steady up about 300 points until a recent spike. The market was briefly up far enough to put the points gains in the top 10 (see below) ... but not any more. |
| Yesterday’s Dow looks nothing like today’s Dow. Behold, a tale of two markets… (h/t @CarlQuintanilla) https://t.co/Zcvc01tYBI | Yesterday’s Dow looks nothing like today’s Dow. Behold, a tale of two markets… (h/t @CarlQuintanilla) https://t.co/Zcvc01tYBI |
| 5.23pm BST | 5.23pm BST |
| 17:23 | 17:23 |
| This is Sam Thielman taking the reins. It’s midday in New York and investors are casting about for something sturdy to buy - consensus picks include, oddly, Best Buy, the American brick-and-mortar electronics retailer, which is up 14.41% in trading today as of this writing. | This is Sam Thielman taking the reins. It’s midday in New York and investors are casting about for something sturdy to buy - consensus picks include, oddly, Best Buy, the American brick-and-mortar electronics retailer, which is up 14.41% in trading today as of this writing. |
| Paul Vigna over at the Wall Street Journal reminds us that the heftiest gain ever logged by the Dow Jones Industrial Average was just over eight points in 1933 - because there were only fifty-something points in the index then. | Paul Vigna over at the Wall Street Journal reminds us that the heftiest gain ever logged by the Dow Jones Industrial Average was just over eight points in 1933 - because there were only fifty-something points in the index then. |
| From Dow Jones itself, a quick list of the biggest one-day gains (points, not percentage) in its history, the top of which is October after the beginning of the US housing market crisis: | From Dow Jones itself, a quick list of the biggest one-day gains (points, not percentage) in its history, the top of which is October after the beginning of the US housing market crisis: |
| 10/13/2008 - 936.42 points, 11.08% | 10/13/2008 - 936.42 points, 11.08% |
| 10/28/2008 - 889.35, 10.88% | 10/28/2008 - 889.35, 10.88% |
| 11/13/2008 - 552.60, 6.67% | 11/13/2008 - 552.60, 6.67% |
| 3/16/2000 - 499.19, 4.93% | 3/16/2000 - 499.19, 4.93% |
| 3/23/2009- 497.48, 6.84% | 3/23/2009- 497.48, 6.84% |
| 11/21/2008 - 494.14, 6.54% | 11/21/2008 - 494.14, 6.54% |
| 11/30/2011- 490.05, 4.24% | 11/30/2011- 490.05, 4.24% |
| 7/24/2002 - 488.95, 6.35% | 7/24/2002 - 488.95, 6.35% |
| 9/30/2008 - 485.21, 4.68% | 9/30/2008 - 485.21, 4.68% |
| 7/29/2002 - 447.48, 5.41% | 7/29/2002 - 447.48, 5.41% |
| Updated | Updated |
| at 5.37pm BST | at 5.37pm BST |
| 5.02pm BST | 5.02pm BST |
| 17:02 | 17:02 |
| FTSE 100 recovers £46bn after surging 3% today | FTSE 100 recovers £46bn after surging 3% today |
| After Monday’s slump, Britain’s FTSE 100 index has just posted its biggest rally in four years. | After Monday’s slump, Britain’s FTSE 100 index has just posted its biggest rally in four years. |
| The blue-chip index jumped 182 points by the close of trading, a gain of 3%, to 6081. | The blue-chip index jumped 182 points by the close of trading, a gain of 3%, to 6081. |
| That means that£46.7bn has just been wiped back onto the value of the index, which shed almost £74bn during Monday’s rout. | That means that£46.7bn has just been wiped back onto the value of the index, which shed almost £74bn during Monday’s rout. |
| It ends a 10-day losing streak which had sent the Footsie 17% down from its record high in April. | It ends a 10-day losing streak which had sent the Footsie 17% down from its record high in April. |
| Copper producer Antofagasta led the risers, finishing up 8.7%, as China’s rate cut helped to push commodity prices higher. | Copper producer Antofagasta led the risers, finishing up 8.7%, as China’s rate cut helped to push commodity prices higher. |
| It’s a relatively small rise in historic terms, though, as this chart shows: | It’s a relatively small rise in historic terms, though, as this chart shows: |
| Markets go down, markets go up. How today's 3.09% rise in the FTSE 100 compares to the top 10 largest daily increases pic.twitter.com/WB2wKtOFl1 | Markets go down, markets go up. How today's 3.09% rise in the FTSE 100 compares to the top 10 largest daily increases pic.twitter.com/WB2wKtOFl1 |
| Tony Cross, market analyst at Trustnet, says the City lost some of its fears over China today: | Tony Cross, market analyst at Trustnet, says the City lost some of its fears over China today: |
| The FTSE-100 has staged a significant turn around over the last 24 hours with investors moving back in after yesterday’s punishing sell-off. The worst may not be over for China but at least for now, markets elsewhere seem happy to divorce themselves from activities in Beijing. | The FTSE-100 has staged a significant turn around over the last 24 hours with investors moving back in after yesterday’s punishing sell-off. The worst may not be over for China but at least for now, markets elsewhere seem happy to divorce themselves from activities in Beijing. |
| Updated | Updated |
| at 5.36pm BST | at 5.36pm BST |
| 4.45pm BST | 4.45pm BST |
| 16:45 | 16:45 |
| Big 'ol rally in Europe today- German DAX up 5%, FTSE up 3%, CAC up 4%....autos main gainer up 6% on close, tech and banking sector up 5.5% | Big 'ol rally in Europe today- German DAX up 5%, FTSE up 3%, CAC up 4%....autos main gainer up 6% on close, tech and banking sector up 5.5% |
| 4.38pm BST | 4.38pm BST |
| 16:38 | 16:38 |
| European stock markets surge back | European stock markets surge back |
| Phew. Trading is over for the day in Europe, and the markets have stormed back from yesterday’s rout. | Phew. Trading is over for the day in Europe, and the markets have stormed back from yesterday’s rout. |
| The FTSeurofirst 300 index has provisionally closed 4.4%, means it has clawed back almost all of Monday’s rout. | The FTSeurofirst 300 index has provisionally closed 4.4%, means it has clawed back almost all of Monday’s rout. |
| Some detail: | Some detail: |
| Just getting the UK data now.... | Just getting the UK data now.... |
| Updated | Updated |
| at 4.41pm BST | at 4.41pm BST |
| 4.27pm BST | 4.27pm BST |
| 16:27 | 16:27 |
| The Wall Street rally is picking up pace, with the Dow Jones industrial average pushing over 400 points or 2.5%. | The Wall Street rally is picking up pace, with the Dow Jones industrial average pushing over 400 points or 2.5%. |
| The S&P 500 index is also up 2.5%, which means it is no longer in correction territory (10% off the recent high). | The S&P 500 index is also up 2.5%, which means it is no longer in correction territory (10% off the recent high). |
| Rally in the Dow Jones Industrial Average reaches 400 points http://t.co/Iehlvb9Kim | Rally in the Dow Jones Industrial Average reaches 400 points http://t.co/Iehlvb9Kim |
| 4.13pm BST | 4.13pm BST |
| 16:13 | 16:13 |
| Fear index falls sharply | Fear index falls sharply |
| On Monday, the VIX “fear index” was too fearful to index -- to quote the ever-quotable Matt Levine. | On Monday, the VIX “fear index” was too fearful to index -- to quote the ever-quotable Matt Levine. |
| That’s because volatility was so extreme that the VIX (a measure of volatility!) couldn’t be measured. But once things calmed down slightly, it hit worrying levels not seen since the dark days of 2009, closing at a four-year high. | That’s because volatility was so extreme that the VIX (a measure of volatility!) couldn’t be measured. But once things calmed down slightly, it hit worrying levels not seen since the dark days of 2009, closing at a four-year high. |
| Today, though, the VIX is a less cowardly beast. It’s down by 22% today, showing that US investors are less worried about the financial markets. | Today, though, the VIX is a less cowardly beast. It’s down by 22% today, showing that US investors are less worried about the financial markets. |