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You can find the current article at its original source at http://www.theguardian.com/business/live/2015/sep/04/business-live-jittery-markets-fall-us-jobs-report
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Jittery markets fall ahead of US jobs report - business live | Jittery markets fall ahead of US jobs report - business live |
(35 minutes later) | |
9.28am BST09:28 | |
The G20 will also resist blasting Beijing over the turbulence caused by its recent devaluation of the yuan, according to CNBC’s Steve Sedgwick. | |
#G20 Sources telling me (not unsurprisingly) NO criticism or even mention of #China specifically in draft Communique. | |
9.25am BST09:25 | |
G20 meeting: All about the Fed, eurozone QE, China and commodities | |
There are four challenges facing finance chiefs at their G20 meeting, Luxembourg finance minister Pierre Gramegna tells Bloomberg TV. | |
He’s hoping for a “frank and open” discussions on these points: | |
On China, Gramegna pointed out that China is still aiming for 7% growth this year, despite the slowdown in its manufacturing sector. That would be an “outstanding result”, compared to Europe. | |
But on the financial side, Gramegna warns that it’s “very difficult” to go against the market. As we may see on Monday, when the Shanghai index reopens.... | |
9.05am BST09:05 | 9.05am BST09:05 |
G20 finance ministers fret about US rate hike | |
The prospect of a US interest rate hike is worrying top finance ministers and central bankers as they gather in Ankara for the G20 meeting. | The prospect of a US interest rate hike is worrying top finance ministers and central bankers as they gather in Ankara for the G20 meeting. |
A draft communique, seen by Bloomberg, warns that: | A draft communique, seen by Bloomberg, warns that: |
In line with the improving economic outlook, monetary policy tightening is more likely in some advanced economies, which may remain one of the main sources of uncertainty in financial markets. | In line with the improving economic outlook, monetary policy tightening is more likely in some advanced economies, which may remain one of the main sources of uncertainty in financial markets. |
However, the G20 meeting isn’t expected to lobby the Federal Reserve not to raise borrowing costs; it would, after all, be a sign of normalisation returning to the world economy. | However, the G20 meeting isn’t expected to lobby the Federal Reserve not to raise borrowing costs; it would, after all, be a sign of normalisation returning to the world economy. |
Updated at 9.25am BST | |
8.45am BST08:45 | 8.45am BST08:45 |
Look who’s back! | Look who’s back! |
Yanis Varoufakis, the former Greek finance minister, has just told CNBC that he won’t back Syriza’s Alexis Tsipras in the general election on September 20th. | Yanis Varoufakis, the former Greek finance minister, has just told CNBC that he won’t back Syriza’s Alexis Tsipras in the general election on September 20th. |
BREAKING: Yanis Varoufakis tells CNBC: I'm not endorsing Tsipras in this election; he is still a friend but we have political disagreement | BREAKING: Yanis Varoufakis tells CNBC: I'm not endorsing Tsipras in this election; he is still a friend but we have political disagreement |
That disagreement is Tsipras’s decision to accept the tough conditions attached to Greece’s third bailout, rather than exiting the eurozone. | That disagreement is Tsipras’s decision to accept the tough conditions attached to Greece’s third bailout, rather than exiting the eurozone. |
LIVE: Varoufakis: A 10 year old would know that (Greece's debt situation) would not end well http://t.co/bJppuJzX5m pic.twitter.com/auHdpiRG98 | LIVE: Varoufakis: A 10 year old would know that (Greece's debt situation) would not end well http://t.co/bJppuJzX5m pic.twitter.com/auHdpiRG98 |
Varoufakis also declared that the political situation in Greece is toxic, with the country “on the foundations of an economy that’s imploding”. | Varoufakis also declared that the political situation in Greece is toxic, with the country “on the foundations of an economy that’s imploding”. |
Six months of brinksmanship and fruitless negotiations, leading to the introduction of capital controls, didn’t exactly help, of course.... | Six months of brinksmanship and fruitless negotiations, leading to the introduction of capital controls, didn’t exactly help, of course.... |
Updated at 8.59am BST | Updated at 8.59am BST |
8.31am BST08:31 | 8.31am BST08:31 |
European stocks fall around 1.4% in early trading | European stocks fall around 1.4% in early trading |
So much for the Draghi rally. | So much for the Draghi rally. |
Europe’s stock markets are sliding back as trading gets underway. | Europe’s stock markets are sliding back as trading gets underway. |
In the City, the FTSE 100 quickly shed 80 points, led by retailers Next and Dixons Carphone (both down 3% after a broker downgrade) and then BP (down 2.7% as the oil price slides again) | In the City, the FTSE 100 quickly shed 80 points, led by retailers Next and Dixons Carphone (both down 3% after a broker downgrade) and then BP (down 2.7% as the oil price slides again) |
This follows a late selloff on Wall Street, showing nervousness ahead of today’s US jobs report. | This follows a late selloff on Wall Street, showing nervousness ahead of today’s US jobs report. |
Tony Cross, market analyst at Trustnet Direct, says: | Tony Cross, market analyst at Trustnet Direct, says: |
A fair chunk of yesterday’s gains have been wiped off London’s FTSE-100 index in the first few minutes of trade this morning with selling in the latter part of yesterday’s Wall Street session clearly taking a toll on sentiment. | A fair chunk of yesterday’s gains have been wiped off London’s FTSE-100 index in the first few minutes of trade this morning with selling in the latter part of yesterday’s Wall Street session clearly taking a toll on sentiment. |
Traders are now looking at screens awash with red numbers and even if today’s non-farm payrolls are seen as having no meaningful implications in driving a September rate hike, the Fed still has time to act before the year is out. Yesterday’s nascent rebound for commodity prices is also looking to be rather short lived – crude oil is slumping once again and as a result it’s little surprise that the natural resources stocks have been shunted towards the foot of the index. | Traders are now looking at screens awash with red numbers and even if today’s non-farm payrolls are seen as having no meaningful implications in driving a September rate hike, the Fed still has time to act before the year is out. Yesterday’s nascent rebound for commodity prices is also looking to be rather short lived – crude oil is slumping once again and as a result it’s little surprise that the natural resources stocks have been shunted towards the foot of the index. |
8.18am BST08:18 | 8.18am BST08:18 |
John Lewis, that barometer of UK high street spending, has reported that sales at its department stores slid by 3.4% year-on-year in the last week of August. Not a great signal. | John Lewis, that barometer of UK high street spending, has reported that sales at its department stores slid by 3.4% year-on-year in the last week of August. Not a great signal. |
It admitted that “a tough trading period closed with another difficult week”, but is pinning its hopes on targeting “pent-up demand” in September. | It admitted that “a tough trading period closed with another difficult week”, but is pinning its hopes on targeting “pent-up demand” in September. |
Updated at 8.19am BST | Updated at 8.19am BST |
8.03am BST08:03 | 8.03am BST08:03 |
We also have fresh signs of weakness in Europe’s powerhouse economy this morning. | We also have fresh signs of weakness in Europe’s powerhouse economy this morning. |
German factory orders shrank by 1.4% in July, according to new data from the Economy Ministry. That’s a big reversal on June’s 1.8% rise in orders. | German factory orders shrank by 1.4% in July, according to new data from the Economy Ministry. That’s a big reversal on June’s 1.8% rise in orders. |
It’s a volatile measure, so caution is needed. But it reinforces Mario Draghi’s point yesterday - Europe’s economy isn’t too rosy. | It’s a volatile measure, so caution is needed. But it reinforces Mario Draghi’s point yesterday - Europe’s economy isn’t too rosy. |
Eurgh...some rather horrible factory orders from Germany -1.4% July vs June...much worse than expected | Eurgh...some rather horrible factory orders from Germany -1.4% July vs June...much worse than expected |
7.55am BST07:55 | 7.55am BST07:55 |
Nikkei index hits seven-month low | Nikkei index hits seven-month low |
A fresh bout of gloom swept Japan’s trading floor today, pushing the Nikkei index down by 2% to a fresh seven-month low. | A fresh bout of gloom swept Japan’s trading floor today, pushing the Nikkei index down by 2% to a fresh seven-month low. |
Nikkei tumbles 2.2% to 17792.16 lowest since Feb on global de-risking. Falls 7% this week, worst week since Apr2014. pic.twitter.com/JZfgn3BoZ0 | Nikkei tumbles 2.2% to 17792.16 lowest since Feb on global de-risking. Falls 7% this week, worst week since Apr2014. pic.twitter.com/JZfgn3BoZ0 |
The selloff appears to have been triggered by renewed worries over the state of the global economy, after Mario Draghi warned yesterday that eurozone growth has slowed. | The selloff appears to have been triggered by renewed worries over the state of the global economy, after Mario Draghi warned yesterday that eurozone growth has slowed. |
Tokyo traders also weren’t impressed by the latest Japanese wage data, which showed real earnings rose just 0.3%. That’s not enough to get Japan’s economy roaring. | Tokyo traders also weren’t impressed by the latest Japanese wage data, which showed real earnings rose just 0.3%. That’s not enough to get Japan’s economy roaring. |
Japanese wages: still stagnant http://t.co/Zgxe0rtST3 pic.twitter.com/qGRidw0qWs | Japanese wages: still stagnant http://t.co/Zgxe0rtST3 pic.twitter.com/qGRidw0qWs |
7.37am BST07:37 | 7.37am BST07:37 |
Introduction: Nervous markets await US jobs report | Introduction: Nervous markets await US jobs report |
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. | Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. |
Today is all about the US jobs report, and the possibility that the long run of record low interest rates is about to end. | Today is all about the US jobs report, and the possibility that the long run of record low interest rates is about to end. |
Investors are hunkering down ahead of the Non-Farm Payroll, released at 1.30pm BST (8.30am EDT). It will show how many new jobs were created in August. | Investors are hunkering down ahead of the Non-Farm Payroll, released at 1.30pm BST (8.30am EDT). It will show how many new jobs were created in August. |
A strong reading could persuade the Federal Reserve to raise borrowing costs soon, perhaps this month, especially if it is accompanied by a decent rise in wages. A poor NFP could kick the first rate hike into 2016. | A strong reading could persuade the Federal Reserve to raise borrowing costs soon, perhaps this month, especially if it is accompanied by a decent rise in wages. A poor NFP could kick the first rate hike into 2016. |
A middling report, though, will leave investors baffled about when the Fed will act, at a time when the global economy is looking weaker. | A middling report, though, will leave investors baffled about when the Fed will act, at a time when the global economy is looking weaker. |
The Wall Street consensus is that the NFP will rise by 218,000, but as usual there’s wide variation, so it could be lively day. | The Wall Street consensus is that the NFP will rise by 218,000, but as usual there’s wide variation, so it could be lively day. |
Especially as Federal Reserve policy maker Jeffrey Lacker will give a speech just before the Non-Farm payroll is released, called “the case against further delay”...... | Especially as Federal Reserve policy maker Jeffrey Lacker will give a speech just before the Non-Farm payroll is released, called “the case against further delay”...... |
Good Most-Important-NFP-ever-Day Morning | Good Most-Important-NFP-ever-Day Morning |
European stock markets are expected to slide by at least 1% this morning, having jumped yesterday after European Central Bank chief Mario Draghi hinted at more stimulus measures. | European stock markets are expected to slide by at least 1% this morning, having jumped yesterday after European Central Bank chief Mario Draghi hinted at more stimulus measures. |
Our European opening calls: $FTSE 6106 down 88 $DAX 10155 down 163 $CAC 4576 down 77 $IBEX 9867 down 176 $MIB 21829 down 348 | Our European opening calls: $FTSE 6106 down 88 $DAX 10155 down 163 $CAC 4576 down 77 $IBEX 9867 down 176 $MIB 21829 down 348 |
Asian markets have already dipped, even though the Chinese bourses are shut until Monday. | Asian markets have already dipped, even though the Chinese bourses are shut until Monday. |
I guess #Draghi's speech never made it to Asia. #Nikkei turns sharply lower. pic.twitter.com/uSbxCOAzIo | I guess #Draghi's speech never made it to Asia. #Nikkei turns sharply lower. pic.twitter.com/uSbxCOAzIo |
We’ll also be tracking reaction to yesterday’s ECB press conference, and monitoring events in Turkey as G20 finance ministers and central bank chiefs meet. | We’ll also be tracking reaction to yesterday’s ECB press conference, and monitoring events in Turkey as G20 finance ministers and central bank chiefs meet. |
Updated at 7.49am BST | Updated at 7.49am BST |