This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.theguardian.com/business/live/2018/oct/12/stock-markets-bounce-losses-ftse-asia-wall-street-business-live

The article has changed 21 times. There is an RSS feed of changes available.

Version 6 Version 7
Stock markets bounce back after heavy losses - business live Stock markets bounce back after heavy losses - business live
(35 minutes later)
Financial titan JP Morgan has given the markets a boost, by releasing stronger financial results than expected.
JP Morgan earned $2.34 per share in the last quarter, beating forecasts of $2.25 per share.
Revenues were 5% higher too, at $27.8bn, suggesting Wall Street is managing to navigate the choppy waters of 2018.
Jamie Dimon, Chairman and CEO, says:
“JPMorgan Chase delivered strong results this quarter with top-line growth in each of our businesses, demonstrating the power of our platform.
The U.S. and the global economy continue to show strength, despite increasing economic and geopolitical uncertainties, which at some point in the future may have negative effects on the economy.”
@jpmorgan releases better than expected results pre-market pic.twitter.com/4HQBuPYC2P
Wall Street traders have woken up in a better mood ....
Futures extend gains, pointing to 400+ point jump on the Dow at the open, as Treasury Sec. Mnuchin tells CNBC that the two day sell-off was just a "natural correction" and the fundamentals of the economy remain strong https://t.co/KuI2jmCoN1 pic.twitter.com/V7tzaEdqAR
Stock markets in emerging economies are recovering some ground today, after suffering their biggest fall in two years on Thursday.Stock markets in emerging economies are recovering some ground today, after suffering their biggest fall in two years on Thursday.
The MSCI index of developing market stocks has jumped by 2.2% today, led by Taiwan (up 2.4%), India (+2.1%), the Philippines (+1.75%) and South Korea (+1.5%).The MSCI index of developing market stocks has jumped by 2.2% today, led by Taiwan (up 2.4%), India (+2.1%), the Philippines (+1.75%) and South Korea (+1.5%).
Here’s Reuters take:Here’s Reuters take:
Those moves tracked a general improvement in appetite for risk among investors globally, with developed world stock markets recovering after a dramatic two-day slide on Wall Street.Those moves tracked a general improvement in appetite for risk among investors globally, with developed world stock markets recovering after a dramatic two-day slide on Wall Street.
“We’re seeing a bit of a rebound in EM stock markets today...we saw a similar occurrence earlier this year when U.S.stocks came under pressure and that automatically improved, and that might be what we’re seeing this time around as well,” said Jason Tuvey, senior emerging markets economist at Capital Economics.“We’re seeing a bit of a rebound in EM stock markets today...we saw a similar occurrence earlier this year when U.S.stocks came under pressure and that automatically improved, and that might be what we’re seeing this time around as well,” said Jason Tuvey, senior emerging markets economist at Capital Economics.
US tech stocks may have a better day too...US tech stocks may have a better day too...
Netflix up 4% in pre-market, so the dip being bought (for now) even as Treasury yields rise again.Netflix up 4% in pre-market, so the dip being bought (for now) even as Treasury yields rise again.
Wall Street is expected to rally when trading begins in four hours.Wall Street is expected to rally when trading begins in four hours.
Dow futures are showing a 350 point gain, which would claw back a chunk of yesterday’s 545-point losses.Dow futures are showing a 350 point gain, which would claw back a chunk of yesterday’s 545-point losses.
Fiona Cincotta of City Index thinks the worst is over, for now anyway....Fiona Cincotta of City Index thinks the worst is over, for now anyway....
The global selloff seems to have come to an end and the market is picking up the pieces after the hurricane. The tally: the Dow has lost 1,400 points in two days, Brent Crude is back down at $81 and the dollar is trading at 1.1579 against the euro. Key indices have fallen below their 200-day moving averages and are beginning to look oversold but the underlying economic reasons for a rise in interest rates that had triggered the spike in bond yields and the selloff in equities is still in place.The global selloff seems to have come to an end and the market is picking up the pieces after the hurricane. The tally: the Dow has lost 1,400 points in two days, Brent Crude is back down at $81 and the dollar is trading at 1.1579 against the euro. Key indices have fallen below their 200-day moving averages and are beginning to look oversold but the underlying economic reasons for a rise in interest rates that had triggered the spike in bond yields and the selloff in equities is still in place.
For the moment though, European markets are back in the black and the recovery in Dow futures indicates a stronger start on Wall Street later today.For the moment though, European markets are back in the black and the recovery in Dow futures indicates a stronger start on Wall Street later today.
Investors should be wary before diving back into the market today, argues Peter Dixon of Commerzbank.Investors should be wary before diving back into the market today, argues Peter Dixon of Commerzbank.
He writes:He writes:
The sharp correction in stock markets in the last couple of days should be seen as a warning shot against the market complacency which has been one of the predominant themes of the last 12 months. Indeed, measures of equity volatility continue to suggest that investors are underpricing risk.The sharp correction in stock markets in the last couple of days should be seen as a warning shot against the market complacency which has been one of the predominant themes of the last 12 months. Indeed, measures of equity volatility continue to suggest that investors are underpricing risk.
We pointed out at the start of the year that equity investors appeared to be increasingly reluctant bulls and were driven more by the FOMO factor (fear of missing out) than the fundamentals, and advised investors to take risk off the table.We pointed out at the start of the year that equity investors appeared to be increasingly reluctant bulls and were driven more by the FOMO factor (fear of missing out) than the fundamentals, and advised investors to take risk off the table.
Dixon points out that shares still look pricy, even though the Footsie has shed almost 10% since the start of the year.Dixon points out that shares still look pricy, even though the Footsie has shed almost 10% since the start of the year.
Having enjoyed a great run since March 2009, with global equities having generated returns of 300%, it is difficult to imagine that there is much more juice to be squeezed out of the lemon. On a conventional valuation basis, long-term P/E ratios suggest that equities are extremely expensive.Having enjoyed a great run since March 2009, with global equities having generated returns of 300%, it is difficult to imagine that there is much more juice to be squeezed out of the lemon. On a conventional valuation basis, long-term P/E ratios suggest that equities are extremely expensive.
The cyclically adjusted P/E (CAPE) popularised by Robert Shiller suggests that the S&P500 has only once been more overvalued than it is today – the late-1990s tech boom – on a dataset going back 130 years:The cyclically adjusted P/E (CAPE) popularised by Robert Shiller suggests that the S&P500 has only once been more overvalued than it is today – the late-1990s tech boom – on a dataset going back 130 years:
Despite today’s recovery, stock markets are heading for their worst week since February, Reuters points out.Despite today’s recovery, stock markets are heading for their worst week since February, Reuters points out.
The markets are breathing a sigh of relief this morning, says Rebecca O’Keeffe, Head of Investment at interactive investor.The markets are breathing a sigh of relief this morning, says Rebecca O’Keeffe, Head of Investment at interactive investor.
But while some investors are piling back into shares, others are being more cautious.But while some investors are piling back into shares, others are being more cautious.
Trade wars, rising interest rates and slowing growth have been front and centre in terms of big macro reasons for the rout, but the reality is that investors need to be asking whether valuations can be justified by company profits or have markets got ahead of themselves?Trade wars, rising interest rates and slowing growth have been front and centre in terms of big macro reasons for the rout, but the reality is that investors need to be asking whether valuations can be justified by company profits or have markets got ahead of themselves?
The start of the US earnings season sees JP Morgan, Wells Fargo and Citibank all reporting today, and good results could provide the catalyst that sees markets recover their recent losses, while disappointing numbers are likely to jeopardise any positive sentiment.The start of the US earnings season sees JP Morgan, Wells Fargo and Citibank all reporting today, and good results could provide the catalyst that sees markets recover their recent losses, while disappointing numbers are likely to jeopardise any positive sentiment.
Newsflash: stricken UK cafe chain Patisserie Valerie has told the City that its finance chief was arrested last night.Newsflash: stricken UK cafe chain Patisserie Valerie has told the City that its finance chief was arrested last night.
This follows the discovery earlier this week of a £20m black hole in the company’s balance, sheet, and “accounting irregularities”.This follows the discovery earlier this week of a £20m black hole in the company’s balance, sheet, and “accounting irregularities”.
The company told shareholders that:The company told shareholders that:
The Company has been made aware that Chris Marsh, who is currently suspended from his role as Company Finance Director, was arrested by the police last night and has been released on bail.The Company has been made aware that Chris Marsh, who is currently suspended from his role as Company Finance Director, was arrested by the police last night and has been released on bail.
Further updates will be released in due course as appropriate.Further updates will be released in due course as appropriate.
Yesterday, Patisserie Valerie warned that it needs “an immediate injection of capital” to survive.Yesterday, Patisserie Valerie warned that it needs “an immediate injection of capital” to survive.
It also revealed earlier this week that it faces a winding-up order from HMRC over an unpaid tax bill of more than £1m that was filed in the high court in mid-September but which the firm’s directors had been unaware of.It also revealed earlier this week that it faces a winding-up order from HMRC over an unpaid tax bill of more than £1m that was filed in the high court in mid-September but which the firm’s directors had been unaware of.
In another sign of easing tensions, the Vix volatility index has dropped this morning.In another sign of easing tensions, the Vix volatility index has dropped this morning.
The VIX is now hovering at 21.74% this morning, down from Thursday’s eight-month high of 25% yesterday.The VIX is now hovering at 21.74% this morning, down from Thursday’s eight-month high of 25% yesterday.
Reports that the leaders of US and China could hold fresh talks over trade next month are also helping the markets shake off their losses.Reports that the leaders of US and China could hold fresh talks over trade next month are also helping the markets shake off their losses.
Mike van Dulken of Accendo Markets explains:Mike van Dulken of Accendo Markets explains:
The Washington Post reported Trump and Xi agreeing to a side-lines meet at next month’s G20 summit, fuelling hopes for a trade war truce to offset rising bond yields mounting pressure on the US economy.The Washington Post reported Trump and Xi agreeing to a side-lines meet at next month’s G20 summit, fuelling hopes for a trade war truce to offset rising bond yields mounting pressure on the US economy.
Global markets have calmed down overnight, says Kit Juckes of French bank Société Générale.Global markets have calmed down overnight, says Kit Juckes of French bank Société Générale.
His morning note to clients is titled “A day off for the horsemen of the apocalypse?”, suggesting he expects less drama today...His morning note to clients is titled “A day off for the horsemen of the apocalypse?”, suggesting he expects less drama today...
European trading is underway, and markets are bouncing back from yesterday’s slumps.European trading is underway, and markets are bouncing back from yesterday’s slumps.
The FTSE 100 is sitting up in bed and taking some soup. The blue-chip index has gained 30 points at the open, or 0.4%, taking it back to 7035.The FTSE 100 is sitting up in bed and taking some soup. The blue-chip index has gained 30 points at the open, or 0.4%, taking it back to 7035.
However, that still means it has suffered a correction (down more than 10% since May).However, that still means it has suffered a correction (down more than 10% since May).
The German market is looking perkier too - the Dax has gained 1.2% at the open. France is up 1%, while Spain is 0.9% higher.The German market is looking perkier too - the Dax has gained 1.2% at the open. France is up 1%, while Spain is 0.9% higher.
Confidence may be returning to the markets, after some panicky moments earlier this week.Confidence may be returning to the markets, after some panicky moments earlier this week.
But is it a proper recovery, or just a classic ‘dead cat bounce’?But is it a proper recovery, or just a classic ‘dead cat bounce’?
Neil Wilson of Markets.com sees reasons for optimism:Neil Wilson of Markets.com sees reasons for optimism:
The breadth and depth of the decline in the US market is a concern and suggest earnings and valuations are a factor.The breadth and depth of the decline in the US market is a concern and suggest earnings and valuations are a factor.
In addition to the yield narrative, in many ways this selloff could reflect real angst about the third-quarter earnings season and what outlook is painted by corporates on earnings calls. ...In addition to the yield narrative, in many ways this selloff could reflect real angst about the third-quarter earnings season and what outlook is painted by corporates on earnings calls. ...
However, on the fundamentals the reasons to be positive remain in place. The fact that the US inflationary pressures are not running out of control continue to suggest this is a picture of good news and fundamental strength.However, on the fundamentals the reasons to be positive remain in place. The fact that the US inflationary pressures are not running out of control continue to suggest this is a picture of good news and fundamental strength.
It’s been a cheerier end to the week in Asia.It’s been a cheerier end to the week in Asia.
China’s benchmark index, the Shanghai Composite, has jumped by 1% - a recent performance, until you remember it slumped by 5% on Thursday.China’s benchmark index, the Shanghai Composite, has jumped by 1% - a recent performance, until you remember it slumped by 5% on Thursday.
Hong Kong’s Hang Seng index is 2% higher, while Japan and Australia have stabilised.Hong Kong’s Hang Seng index is 2% higher, while Japan and Australia have stabilised.
Most of Asia's stocks are recovering after the biggest sell-off in global equities since February https://t.co/iPLwQeLLBn pic.twitter.com/93n5qdmDf0Most of Asia's stocks are recovering after the biggest sell-off in global equities since February https://t.co/iPLwQeLLBn pic.twitter.com/93n5qdmDf0
Stephen Innes of trading group OANDA reckons traders need the weekend to recuperate, after some draining days:Stephen Innes of trading group OANDA reckons traders need the weekend to recuperate, after some draining days:
This market is exhausted from all after the most significant sell-off in global equities since February.This market is exhausted from all after the most significant sell-off in global equities since February.
Its large shake out the landscape remains no less uncertain and while the current narrative is likely to rage on until Novembers G20 summit at least, prudence suggesting keeping one’s powder dry on this recovering Friday and live to fight another day after yesterday most unpleasant experiences.Its large shake out the landscape remains no less uncertain and while the current narrative is likely to rage on until Novembers G20 summit at least, prudence suggesting keeping one’s powder dry on this recovering Friday and live to fight another day after yesterday most unpleasant experiences.
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.
After two days of heavy losses, the financial markets are catching their breath and assessing the situation today.After two days of heavy losses, the financial markets are catching their breath and assessing the situation today.
Asian markets have rallied a little overnight, and traders are predicting a bounce-back in Europe this morning too.Asian markets have rallied a little overnight, and traders are predicting a bounce-back in Europe this morning too.
European Opening Calls:#FTSE 7053 +0.65%#DAX 11685 +1.26%#CAC 5171 +1.26%#MIB 19599 +1.25%#IBEX 9114 +1.17%European Opening Calls:#FTSE 7053 +0.65%#DAX 11685 +1.26%#CAC 5171 +1.26%#MIB 19599 +1.25%#IBEX 9114 +1.17%
But there’s still a lot of anxiety in the City today, after investors watched the FTSE 100 lurch down by 2% into a correction yesterday.But there’s still a lot of anxiety in the City today, after investors watched the FTSE 100 lurch down by 2% into a correction yesterday.
That set up Wall Street for another big slump last night; the Dow lost another 545 points, taking its two-day losses to over 1,300 points, or 5%.That set up Wall Street for another big slump last night; the Dow lost another 545 points, taking its two-day losses to over 1,300 points, or 5%.
Anxiety over US interest rates, the trade war between America and China, and signs that the world economy is slowing are all being blamed.Anxiety over US interest rates, the trade war between America and China, and signs that the world economy is slowing are all being blamed.
Plus, Donald Trump is adding to the uncertainty by firing a series of pot-shots at the Federal Reserve, who he blames for fuelling the sell-off.Plus, Donald Trump is adding to the uncertainty by firing a series of pot-shots at the Federal Reserve, who he blames for fuelling the sell-off.
Here’s yesterday’s liveblog, covering all the drama from Europe, to the US and then Asia:Here’s yesterday’s liveblog, covering all the drama from Europe, to the US and then Asia:
David Madden, market analyst at CMC Markets, says investors remain nervous..... while also wondering if this week’s turmoil is actually a buying opportunity.David Madden, market analyst at CMC Markets, says investors remain nervous..... while also wondering if this week’s turmoil is actually a buying opportunity.
It was a choppy day yesterday as traders remained cautious about the prospect of higher interest rates in the US, mounting political pressure in Italy, and deteriorating global trading relationships. We saw huge swings in European and US stock markets as traders were battling with the age old emotions of fear and greed.It was a choppy day yesterday as traders remained cautious about the prospect of higher interest rates in the US, mounting political pressure in Italy, and deteriorating global trading relationships. We saw huge swings in European and US stock markets as traders were battling with the age old emotions of fear and greed.
Traders love to snap up relatively cheap stocks, but sharp moves to the downside have left some traders worried this could be the beginning of a major decline. Stocks in Europe and the US finished the day firmly in the red.Traders love to snap up relatively cheap stocks, but sharp moves to the downside have left some traders worried this could be the beginning of a major decline. Stocks in Europe and the US finished the day firmly in the red.
On the economic front, we get a new healthcheck on Europe’s factories today, plus a new measure of US confidence.On the economic front, we get a new healthcheck on Europe’s factories today, plus a new measure of US confidence.
Plus it’s the start of the bank reporting season, with Citi, JP Morgan, and Wells Fargo all reporting results. That could well move the markets....Plus it’s the start of the bank reporting season, with Citi, JP Morgan, and Wells Fargo all reporting results. That could well move the markets....
The agendaThe agenda
10am BST: Eurozone industrial production figures for August10am BST: Eurozone industrial production figures for August
3pm BST: University of Michigan survey of consumer sentiment3pm BST: University of Michigan survey of consumer sentiment