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FTSE 100 hits fresh six-month low amid fears over trade, oil and rates – business live FTSE 100 hits fresh six-month low amid fears over trade, oil and rates – business live
(35 minutes later)
Just in: Bank of America has beaten Wall Street forecasts, which might calm some investors’ nerves.
The second-largest US bank make profits of 66 cents per share in the last quarter, ahead of the 62 cents expected by analysts.
Revenues grew by 4%, as Bank of America benefitted from higher interest rates and recent US tax cuts.
Chief executive officer Brian Moynihan sounds upbeat, declaring:
“Responsible growth, backed by a solid U.S. economy and a healthy U.S. consumer, combined to deliver the highest quarterly pre-tax earnings in our company’s history.”
More UK retail gloom:More UK retail gloom:
Fashion accessories retailer Claire’s is considering a raft of store closures in the UK, according to a report on the Press Association.Fashion accessories retailer Claire’s is considering a raft of store closures in the UK, according to a report on the Press Association.
The US stock market is expected to lose ground when trading begins in three hours.The US stock market is expected to lose ground when trading begins in three hours.
The futures market is indicating the Dow Jones industrial average will shed 106 points, or 0.4%, at the open.The futures market is indicating the Dow Jones industrial average will shed 106 points, or 0.4%, at the open.
New retail sales figures (at 1.30pm UK time) and financial results from Bank of America could both move the markets.New retail sales figures (at 1.30pm UK time) and financial results from Bank of America could both move the markets.
The main Asian stock markets have all closed in the red today.The main Asian stock markets have all closed in the red today.
Japan fell by almost 1.8%, Hong Kong lost 1.5%, Shanghai shed 1.4% and Australia finished 1% lower (our earlier summary has more details)Japan fell by almost 1.8%, Hong Kong lost 1.5%, Shanghai shed 1.4% and Australia finished 1% lower (our earlier summary has more details)
APAC Closing Prices:#ASX 5837.1 -0.99%#NIKKEI 22271.3 -1.87%#HSI 25445.06 -1.38%#HSHARES 10144.34 -1.50%#CSI300 3126.45 -1.40%APAC Closing Prices:#ASX 5837.1 -0.99%#NIKKEI 22271.3 -1.87%#HSI 25445.06 -1.38%#HSHARES 10144.34 -1.50%#CSI300 3126.45 -1.40%
The oil price is pushing higher this morning, amid rising tensions between Saudi and the US over the disappearance of journalist Jamal Khashoggi.The oil price is pushing higher this morning, amid rising tensions between Saudi and the US over the disappearance of journalist Jamal Khashoggi.
Brent crude has risen 1% to $81.25 per barrel, back towards the four-year high set earlier this month.Brent crude has risen 1% to $81.25 per barrel, back towards the four-year high set earlier this month.
Bloomberg is reporting that the Saudi King has ordered an “internal probe” into the Khashoggi - who is presumed to have been murdered after entering the Saudi consulate in Istanbul.Bloomberg is reporting that the Saudi King has ordered an “internal probe” into the Khashoggi - who is presumed to have been murdered after entering the Saudi consulate in Istanbul.
On Saturday, US president Donald Trump vowed ‘severe punishment’ if it was confirmed that the Saudi regime had killed Khashoggi. This was a hardening of Trump’s original position, that he didn’t want to risk investment and jobs over the case.On Saturday, US president Donald Trump vowed ‘severe punishment’ if it was confirmed that the Saudi regime had killed Khashoggi. This was a hardening of Trump’s original position, that he didn’t want to risk investment and jobs over the case.
Saudi Arabia, though, denies being involved -- and has now vowed to retaliate if sanctions are imposed.Saudi Arabia, though, denies being involved -- and has now vowed to retaliate if sanctions are imposed.
In theory, Saudi could hurt America badly by cutting crude production -- in a repeat of the 1970s oil shock. That would send transport costs soaring, drive inflation higher, and hurt growth.In theory, Saudi could hurt America badly by cutting crude production -- in a repeat of the 1970s oil shock. That would send transport costs soaring, drive inflation higher, and hurt growth.
Saudi is the biggest single producer in the Opec cartel, producing over 10 million barrels today (global demand is 100 barrels/day), so it could have a major impact on prices.Saudi is the biggest single producer in the Opec cartel, producing over 10 million barrels today (global demand is 100 barrels/day), so it could have a major impact on prices.
However, there’s an argument that rival suppliers, such as the US shale industry, could step in to fill a production shortfall.However, there’s an argument that rival suppliers, such as the US shale industry, could step in to fill a production shortfall.
Ouch. Germany’s stock exchange has now overcome its technical issues, and traders are sending shares lower.Ouch. Germany’s stock exchange has now overcome its technical issues, and traders are sending shares lower.
The DAX has dipped by 20 points, or 0.18%, to 11,503 points, a new 20-month low.The DAX has dipped by 20 points, or 0.18%, to 11,503 points, a new 20-month low.
DAX -15.50% from peak and at its lowest level since February 2017DAX -15.50% from peak and at its lowest level since February 2017
The gold price has jumped by 1% today to $1,231 per ounce.The gold price has jumped by 1% today to $1,231 per ounce.
Bullion is benefiting from a “flight to safety” as nervous investors look for a safer place for their money, says Stephen Innes of trading firm OANDA:Bullion is benefiting from a “flight to safety” as nervous investors look for a safer place for their money, says Stephen Innes of trading firm OANDA:
While the market’s version of a “Red October “ makes it way into the South China Sea, echoes of Octobers past are reverberating throughout global capital markets as risk off continues to linger with equity market look ever so fragile.While the market’s version of a “Red October “ makes it way into the South China Sea, echoes of Octobers past are reverberating throughout global capital markets as risk off continues to linger with equity market look ever so fragile.
The US Treasury is set to release the semi-annual FX report. While China doesn’t meet the historical criteria to be named a currency manipulator who is to say, President Trump, my not rewrite the requirements so that China’s inclusion in the future is assured?The US Treasury is set to release the semi-annual FX report. While China doesn’t meet the historical criteria to be named a currency manipulator who is to say, President Trump, my not rewrite the requirements so that China’s inclusion in the future is assured?
Geopolitical embers are smouldering, threatening to ignite the middle east powder over the disappearance of journalist Jamal Khashoggi.Geopolitical embers are smouldering, threatening to ignite the middle east powder over the disappearance of journalist Jamal Khashoggi.
The UK FTSE 100 has just hit a new six-month low, as its early gains fizzle out.The UK FTSE 100 has just hit a new six-month low, as its early gains fizzle out.
The blue-chip index of leading sharews in London is now down 27 points at 6968.The blue-chip index of leading sharews in London is now down 27 points at 6968.
That’s its lowest level since the end of March, adding to last week’s losses.That’s its lowest level since the end of March, adding to last week’s losses.
This follows the weak trading in Asia (where Japan lost 1.8% and China fell 1.4%).This follows the weak trading in Asia (where Japan lost 1.8% and China fell 1.4%).
Russ Mould, investment director at AJ Bell explains:Russ Mould, investment director at AJ Bell explains:
“There is a noticeable lack of bargain hunters on Monday morning as last Friday’s rebound in select parts of the market fails to extend into the new working week.“There is a noticeable lack of bargain hunters on Monday morning as last Friday’s rebound in select parts of the market fails to extend into the new working week.
The FTSE 100 was down 0.1% in early trading at 6,988 with investors clearly lacking confidence to snap up stocks whose share prices were badly damaged in last week’s market sell-off.The FTSE 100 was down 0.1% in early trading at 6,988 with investors clearly lacking confidence to snap up stocks whose share prices were badly damaged in last week’s market sell-off.
The biggest riser is gold producer Randgold – a traditional ‘safe-haven’ in troubled times, with other ‘defensive’ stocks such as British American Tobacco and BT Group also in demand.The biggest riser is gold producer Randgold – a traditional ‘safe-haven’ in troubled times, with other ‘defensive’ stocks such as British American Tobacco and BT Group also in demand.
Engineering firms such as Melrose and BAE are among the big fallers:Engineering firms such as Melrose and BAE are among the big fallers:
Pakistan’s stock market has made a bad start to the new week, falling over 2% in early trading.Pakistan’s stock market has made a bad start to the new week, falling over 2% in early trading.
That follows a 4% tumble last week, as investors fretted about Pakistan’s economic outlook.That follows a 4% tumble last week, as investors fretted about Pakistan’s economic outlook.
Prime Minister Imran Khan is seeking an emergency bailout from the International Monetary Fund, who may demand tough austerity measures in return.Prime Minister Imran Khan is seeking an emergency bailout from the International Monetary Fund, who may demand tough austerity measures in return.
Pakistan's stock markets tumbles yet again - index down 2% in biggest decline in Asia today. Its dropped by such a level or more only 10 times this year pic.twitter.com/SQ9Im7PtU5Pakistan's stock markets tumbles yet again - index down 2% in biggest decline in Asia today. Its dropped by such a level or more only 10 times this year pic.twitter.com/SQ9Im7PtU5
Germany’s stock exchange has been hit by a technical glitch that has prevented trading getting underway.Germany’s stock exchange has been hit by a technical glitch that has prevented trading getting underway.
The Financial Times explains:The Financial Times explains:
The opening of trade in Deutsche Börse’s stock market, the primary trading venue for German equities, was delayed on Monday by “technical problems”.The opening of trade in Deutsche Börse’s stock market, the primary trading venue for German equities, was delayed on Monday by “technical problems”.
Deutsche Börse’s Xetrastock exchange, one of Europe’s biggest, faced issues with its “trading infrastructure” which meant the “trading start will not take place according to the usual trading schedule.”Deutsche Börse’s Xetrastock exchange, one of Europe’s biggest, faced issues with its “trading infrastructure” which meant the “trading start will not take place according to the usual trading schedule.”
So, we can’t see how the German DAX is faring yet....So, we can’t see how the German DAX is faring yet....
As feared, there’s no recovery in Europe’s stock market this morning.As feared, there’s no recovery in Europe’s stock market this morning.
The Stoxx 600 index, which tracks the largest European companies, has dropped by another 0.4% to a fresh 22-month low.The Stoxx 600 index, which tracks the largest European companies, has dropped by another 0.4% to a fresh 22-month low.
With traders reluctant to take risks, there’s a jittery feel in the trading floors again.With traders reluctant to take risks, there’s a jittery feel in the trading floors again.
Kit Juckes of Societe Generale says:Kit Juckes of Societe Generale says:
The Swiss franc and yen are stronger. Hard Brexit risks are mounting, global political risks are ever-present and equities and bond yields are lower ex-Italy.The Swiss franc and yen are stronger. Hard Brexit risks are mounting, global political risks are ever-present and equities and bond yields are lower ex-Italy.
The breakdown in Brexit talks, the disappearance of dissident Saudi journalist Jamal Khashoggi, the demise of the CSU in Bavarian elections, the impasse over Italy’s budget and the worried tone coming from the IMF/World Bank meetings in Bali all combine to give financial markets an uncomfortable feel this morning.The breakdown in Brexit talks, the disappearance of dissident Saudi journalist Jamal Khashoggi, the demise of the CSU in Bavarian elections, the impasse over Italy’s budget and the worried tone coming from the IMF/World Bank meetings in Bali all combine to give financial markets an uncomfortable feel this morning.
Shares in UK fashion group SuperDry have plunged by 20% after it shocked the City with a profits warning.Shares in UK fashion group SuperDry have plunged by 20% after it shocked the City with a profits warning.
SuperDry says that the “unseasonably hot weather conditions” in the UK, Continental Europe and on the East Coast of America has hit demand for its autumn ranges, and wipe £10m off profits.SuperDry says that the “unseasonably hot weather conditions” in the UK, Continental Europe and on the East Coast of America has hit demand for its autumn ranges, and wipe £10m off profits.
In another blow, the company is taking an £8m hit on foreign exchange costs, after discovering that its “hedging mechanisms” have not protected it from volatility in the currency markets.In another blow, the company is taking an £8m hit on foreign exchange costs, after discovering that its “hedging mechanisms” have not protected it from volatility in the currency markets.
Investors aren’t impressed - sending SuperDry shares sliding from £10.15 to just £8.12. At the start of the year they were worth £20.Investors aren’t impressed - sending SuperDry shares sliding from £10.15 to just £8.12. At the start of the year they were worth £20.
Profit warnings from Superdry blaming recent warm weather and currency. pic.twitter.com/AKY8yWaKGXProfit warnings from Superdry blaming recent warm weather and currency. pic.twitter.com/AKY8yWaKGX
Astonishingly, that’s not enough to make SuperDry the worst-performing stock today.Astonishingly, that’s not enough to make SuperDry the worst-performing stock today.
That ‘honour’ goes to medical equipment maker ConvaTec, whose shares have lurched 30% lower. The colostomy and wound bag manufacturer has slashed its profit forecasts, due to “challenging market dynamics”, and its CEO is retiring.That ‘honour’ goes to medical equipment maker ConvaTec, whose shares have lurched 30% lower. The colostomy and wound bag manufacturer has slashed its profit forecasts, due to “challenging market dynamics”, and its CEO is retiring.
Convatec shares slump by a quarter after FTSE 250 medical equipment maker issues latest profit warning alongside departure of Paul Moraviec, its chief executive. Shares trading at fresh lows of 167p, versus float price of 225p. pic.twitter.com/BmjBJlEL69Convatec shares slump by a quarter after FTSE 250 medical equipment maker issues latest profit warning alongside departure of Paul Moraviec, its chief executive. Shares trading at fresh lows of 167p, versus float price of 225p. pic.twitter.com/BmjBJlEL69
In London, the FTSE 100 index has opened 20 points higher (+0.3%), as traders try to put last week’s losses behind them.In London, the FTSE 100 index has opened 20 points higher (+0.3%), as traders try to put last week’s losses behind them.
Artjom Hatsaturjants at City firm Accendo Markets says the pound’s weakness is helping multinational companies:Artjom Hatsaturjants at City firm Accendo Markets says the pound’s weakness is helping multinational companies:
The muted open comes after a negative start to the week in Asia, where concerns over rising US interest rates continued weighing on equities.The muted open comes after a negative start to the week in Asia, where concerns over rising US interest rates continued weighing on equities.
Brexit negotiations suffered another setback over the weekend, as PM Theresa May rejected key EU proposals over the Irish border, dealing a blow to negotiations to avert a hard Brexit. This has sent the GBP [the pound] sharply lower ahead of an EU leaders summit on Wednesday, helping FTSE’s international names.Brexit negotiations suffered another setback over the weekend, as PM Theresa May rejected key EU proposals over the Irish border, dealing a blow to negotiations to avert a hard Brexit. This has sent the GBP [the pound] sharply lower ahead of an EU leaders summit on Wednesday, helping FTSE’s international names.
After another day of losses, China’s stock market has sunk to its lowest closing level in almost four years.After another day of losses, China’s stock market has sunk to its lowest closing level in almost four years.
CHINA’S SHANGHAI COMPOSITE INDEX CLOSES DOWN 1.49% TO 2568.1CHINA’S SHANGHAI COMPOSITE INDEX CLOSES DOWN 1.49% TO 2568.1
CHINA’S CSI 300 INDEX FALLS 1.4% TO 3,126.45 AT CLOSECHINA’S CSI 300 INDEX FALLS 1.4% TO 3,126.45 AT CLOSE