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You can find the current article at its original source at https://www.theguardian.com/business/live/2018/dec/07/markets-rebound-ftse-asia-wall-street-huawei-us-jobs-report-business-live
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| Wall Street suffers worst week since March as trade wars worry investors – as it happened | |
| (35 minutes later) | |
| And finally.... Wall Street can put a brutal week behind it, as the closing bell rings. | |
| The Dow Jones industrial average has ended the day down 559 points, a drop of 2.2%. The S&P 500 fell 2.3% | |
| Technology stocks led the rout, with Microsoft down 4%, Intel losing 3.75%, Cisco off 3.7%, IBM losing 3.6% and Apple shedding 3.3% | |
| This knocked Nasdaq down by over 3%. | |
| All three indices have just suffered their worst week since March, down at least 4.5%. | |
| That’s a good illustration of the worry that swept Wall Street this week, as investors fretted about a slowing economy and heightening trade war fears. | |
| Going into the weekend like this. pic.twitter.com/EJm8TRZKKv | |
| Next week could be dramatic too, with the Huawei case overshadowing markets and Brexit heading towards a climax.... Until then, goodnight. GW | |
| CNBC have pinned the blame for today’s losses on Peter Navarro, a trade advisor to president Trump. | CNBC have pinned the blame for today’s losses on Peter Navarro, a trade advisor to president Trump. |
| Navarro’s told CNN earlier that Trump would “simply raise” tariffs on billions of dollars worth of Chinese goods if no deal is reached during the cease-fire. Cue a sell-off.... | Navarro’s told CNN earlier that Trump would “simply raise” tariffs on billions of dollars worth of Chinese goods if no deal is reached during the cease-fire. Cue a sell-off.... |
| This one chart shows the confusion the Trump administration is causing the market about trade. https://t.co/kO80a8Xnzj pic.twitter.com/2jxbs6LoPh | This one chart shows the confusion the Trump administration is causing the market about trade. https://t.co/kO80a8Xnzj pic.twitter.com/2jxbs6LoPh |
| It’s hard to remember now, but this week began with optimism following Donald Trump’s dinner date with Xi Jinping. | It’s hard to remember now, but this week began with optimism following Donald Trump’s dinner date with Xi Jinping. |
| On Monday, investors were talking about a ‘trade truce’. Now, they’re looking at a 5% drop in US stocks over the week: | On Monday, investors were talking about a ‘trade truce’. Now, they’re looking at a 5% drop in US stocks over the week: |
| It took just one week for a $1 trillion wipeout in U.S. stocks https://t.co/dFVB8DxZB6 pic.twitter.com/p3zQIKcrgF | It took just one week for a $1 trillion wipeout in U.S. stocks https://t.co/dFVB8DxZB6 pic.twitter.com/p3zQIKcrgF |
| Ernie Cecilia, chief investment officer at Bryn Mawr Trust Co, blames this week’s market gyrations on a “repricing of growth.” | Ernie Cecilia, chief investment officer at Bryn Mawr Trust Co, blames this week’s market gyrations on a “repricing of growth.” |
| Cecilia says (via Bloomberg): | Cecilia says (via Bloomberg): |
| The bond market is essentially saying we don’t see the kind of growth that we’ve had. So what the market is doing is repricing stocks, particularly those that have performed extraordinarily well, to a lower growth rate. | The bond market is essentially saying we don’t see the kind of growth that we’ve had. So what the market is doing is repricing stocks, particularly those that have performed extraordinarily well, to a lower growth rate. |
| More details of Meng Wanzhou’s bail hearing: | More details of Meng Wanzhou’s bail hearing: |
| Meng Wanzhou’s lawyer now arguing for her bail, saying she would never breach a court order because it would humiliate her father (the founder of Huawei) and the company’s employees. Says she should not be punished for her wealth. | Meng Wanzhou’s lawyer now arguing for her bail, saying she would never breach a court order because it would humiliate her father (the founder of Huawei) and the company’s employees. Says she should not be punished for her wealth. |
| Court sketch of Huawei CFO Meng Wanzhou in green prison sweatsuit. Her father founded the Chinese tech giant, his net worth is 3.2 billion dollars. Family’s wealth is key argument in the request that her bail be denied. Lawyer says no amount of bail will be incentive to stay pic.twitter.com/a8LUmvfGa6 | Court sketch of Huawei CFO Meng Wanzhou in green prison sweatsuit. Her father founded the Chinese tech giant, his net worth is 3.2 billion dollars. Family’s wealth is key argument in the request that her bail be denied. Lawyer says no amount of bail will be incentive to stay pic.twitter.com/a8LUmvfGa6 |
| The Nasdaq is now down 3%, as a late burst of selling hits the index. | The Nasdaq is now down 3%, as a late burst of selling hits the index. |
| Panic-like selling takes hold in Nasdaq as stock-market losses gather steam in final hour Friday https://t.co/2j3Jozb0QE | Panic-like selling takes hold in Nasdaq as stock-market losses gather steam in final hour Friday https://t.co/2j3Jozb0QE |
| Over in Vancouver, Huawei CFO Meng Wanzhou’s extradition hearing is underway. | Over in Vancouver, Huawei CFO Meng Wanzhou’s extradition hearing is underway. |
| Several journalists are tweeting about the case, which has spooked markets in recent days (and a major factor behind today’s falls in New York) | Several journalists are tweeting about the case, which has spooked markets in recent days (and a major factor behind today’s falls in New York) |
| Here’s Mi-Jung Lee of CTV Vancouver: | Here’s Mi-Jung Lee of CTV Vancouver: |
| Huge lineup to get into BC court for #Meng hearing. Waiting for things to get started.#huawei | Huge lineup to get into BC court for #Meng hearing. Waiting for things to get started.#huawei |
| Crown says #Meng deceived US financial institution and exposed it to risk of being fined. #huawei #bailhearing | Crown says #Meng deceived US financial institution and exposed it to risk of being fined. #huawei #bailhearing |
| Deirdre Bosa of CNBC is also covering the trial: | Deirdre Bosa of CNBC is also covering the trial: |
| 1/2 Canadian AG - Factors supporting opposition to Meng’s release on bail: no meaningful connection to this jurisdiction, access to vast resources and connections, pattern where she has avoided the US since becoming aware of criminal investigations in that country #huawei | 1/2 Canadian AG - Factors supporting opposition to Meng’s release on bail: no meaningful connection to this jurisdiction, access to vast resources and connections, pattern where she has avoided the US since becoming aware of criminal investigations in that country #huawei |
| 2/2 Canadian AG: Her ordinary settled routine of life is in China. That country does not have an extradition treaty w the US | 2/2 Canadian AG: Her ordinary settled routine of life is in China. That country does not have an extradition treaty w the US |
| Meng was arrested in Vancouver airport while in transit From HK on route to Mexico. #HuaweiArrest | Meng was arrested in Vancouver airport while in transit From HK on route to Mexico. #HuaweiArrest |
| Crux of allegation from AG: Between approx 2009 and 2014 #Huawei used an unofficial subsidiary called Skycom to track activity in Iran. Banks in the US then cleared money for Huawei. Unknown to them, they were conducting biz for skycom | Crux of allegation from AG: Between approx 2009 and 2014 #Huawei used an unofficial subsidiary called Skycom to track activity in Iran. Banks in the US then cleared money for Huawei. Unknown to them, they were conducting biz for skycom |
| AG: Meng personally reperesented that skycom and huawei were separate when in fact they were not | AG: Meng personally reperesented that skycom and huawei were separate when in fact they were not |
| Due to these #Huawei violations, it violated bank internal laws and exposed banks to possible fines | Due to these #Huawei violations, it violated bank internal laws and exposed banks to possible fines |
| Technology stocks are being hit hard tonight, as persistent worries about trade wars ripple through Wall Street again. | Technology stocks are being hit hard tonight, as persistent worries about trade wars ripple through Wall Street again. |
| Chip makers, and consumer electronics companies such as Apple, are leading the sell-off. | Chip makers, and consumer electronics companies such as Apple, are leading the sell-off. |
| Another brutal week for #Apple....down 5%, now lowest since May pic.twitter.com/npXY6DajnT | Another brutal week for #Apple....down 5%, now lowest since May pic.twitter.com/npXY6DajnT |
| With two hours of the trading week to go, Wall Street is heading deeper into the red. | With two hours of the trading week to go, Wall Street is heading deeper into the red. |
| Here’s the damage: | Here’s the damage: |
| Dow: down 527 points or 2.1% at 24,420 | Dow: down 527 points or 2.1% at 24,420 |
| S&P 500: down 57 points or 2.1% at 2,638 | S&P 500: down 57 points or 2.1% at 2,638 |
| Nasdaq: down 187 points or 2.6% at 7,000 | Nasdaq: down 187 points or 2.6% at 7,000 |
| Fiona Cincotta of City Index says the New York market is getting rather nervous... | Fiona Cincotta of City Index says the New York market is getting rather nervous... |
| Apart from the China trade factor the US markets have been more nervous than usual over the last few sessions as investors are getting increasingly concerned that the long-term bull run in the stock markets may be nearing its end. | Apart from the China trade factor the US markets have been more nervous than usual over the last few sessions as investors are getting increasingly concerned that the long-term bull run in the stock markets may be nearing its end. |
| During the week the yields in the bond markets inverted – that is, some of the yields on longer term papers declined below the shorter term yields, a reversal of a normal situation and a signal that has in the past preceded economic downturn. | During the week the yields in the bond markets inverted – that is, some of the yields on longer term papers declined below the shorter term yields, a reversal of a normal situation and a signal that has in the past preceded economic downturn. |
| Today’s losses risk dragging the Dow Jones industrial average into a bear market: | Today’s losses risk dragging the Dow Jones industrial average into a bear market: |
| The Dow has dropped nearly 9% since hitting an all-time high Oct. 3. If it hits -10%, it's a correction. https://t.co/zLDwiQsCM4 pic.twitter.com/rU3OuN0U1v | The Dow has dropped nearly 9% since hitting an all-time high Oct. 3. If it hits -10%, it's a correction. https://t.co/zLDwiQsCM4 pic.twitter.com/rU3OuN0U1v |
| Shares in US Steel are down 1.45% today, reflecting concerns over trade relations between America and China. | Shares in US Steel are down 1.45% today, reflecting concerns over trade relations between America and China. |
| That’s not too bad a fall...but look at the picture since Donald Trump started imposing tariffs: | That’s not too bad a fall...but look at the picture since Donald Trump started imposing tariffs: |
| US Steel is down 54% since the Tariff announcement back on March 1st. $X pic.twitter.com/31vM49VVlk | US Steel is down 54% since the Tariff announcement back on March 1st. $X pic.twitter.com/31vM49VVlk |
| Although today’s US jobs report showed fewer new jobs than expected, and less wage growth, it wasn’t a shocker. | Although today’s US jobs report showed fewer new jobs than expected, and less wage growth, it wasn’t a shocker. |
| Here’s Marketwatch’s take: | Here’s Marketwatch’s take: |
| The jobs report threaded the needle really well,” J.J. Kinahan, chief market strategist with TD Ameritrade told MarketWatch, arguing that 155,000 new jobs is neither to high nor too low for investors. | The jobs report threaded the needle really well,” J.J. Kinahan, chief market strategist with TD Ameritrade told MarketWatch, arguing that 155,000 new jobs is neither to high nor too low for investors. |
| “Had the this come in really hot, the market would have interpreted it as a number that would force the Fed to raise rates not just in December, but in March too,” he said. “You also didn’t want to miss in a huge way on the down side, as it would have shaken faith in the economy,” he said. | “Had the this come in really hot, the market would have interpreted it as a number that would force the Fed to raise rates not just in December, but in March too,” he said. “You also didn’t want to miss in a huge way on the down side, as it would have shaken faith in the economy,” he said. |
| Oil prices recover as Opec and allies agree to cut output | Oil prices recover as Opec and allies agree to cut output |
| Here’s a neat chart showing where jobs were created, and lost, in the US last month: | Here’s a neat chart showing where jobs were created, and lost, in the US last month: |
| Here’s where the jobs are — in one chart. https://t.co/DBEF8KdoqO pic.twitter.com/FX5zXYioC0 | Here’s where the jobs are — in one chart. https://t.co/DBEF8KdoqO pic.twitter.com/FX5zXYioC0 |
| David Madden of CMC Markets blames conflicting noises from White House advisors for the losses in New York today. | David Madden of CMC Markets blames conflicting noises from White House advisors for the losses in New York today. |
| Markets have had a volatile few days and today is no different. The Major US indices rallied on the open, but turned lower yet again. The sharp move on Wall Street is partially driven by conflicting announcements from Washington DC. Larry Kudlow, director of the US national economic council, claimed the Federal Reserve responds to data, not President Trump. Mr Kudlow also said the US might extend the 90-day truce with China if talks don’t go well. | Markets have had a volatile few days and today is no different. The Major US indices rallied on the open, but turned lower yet again. The sharp move on Wall Street is partially driven by conflicting announcements from Washington DC. Larry Kudlow, director of the US national economic council, claimed the Federal Reserve responds to data, not President Trump. Mr Kudlow also said the US might extend the 90-day truce with China if talks don’t go well. |
| On the other hand, Peter Navarro ,advisor to Trump ,claims the US will press ahead with new tariffs if a deal hasn’t been reached after the 90 day period. | On the other hand, Peter Navarro ,advisor to Trump ,claims the US will press ahead with new tariffs if a deal hasn’t been reached after the 90 day period. |
| The non-farm payrolls report was “mediocre”, Madden adds. | The non-farm payrolls report was “mediocre”, Madden adds. |
| In November, 155,000 jobs were added, which was well below the 200,000 that economists were expecting. The October report was revised down to 237,000 from 250,000. The jobless rate remained unchanged at 3.7% - meeting forecasts. On a monthly basis, average earnings was 0.2%, but traders were expecting 0.3%, and the October reading was revised down to 0.1% from 0.2% The yearly average earnings reading held steady at 3.1%. | In November, 155,000 jobs were added, which was well below the 200,000 that economists were expecting. The October report was revised down to 237,000 from 250,000. The jobless rate remained unchanged at 3.7% - meeting forecasts. On a monthly basis, average earnings was 0.2%, but traders were expecting 0.3%, and the October reading was revised down to 0.1% from 0.2% The yearly average earnings reading held steady at 3.1%. |
| There were positive aspects to the report, but the negatives made traders less fearful about potential rate hikes from the Federal Reserve. | There were positive aspects to the report, but the negatives made traders less fearful about potential rate hikes from the Federal Reserve. |
| Back on Wall Street, the Dow is over 400 points down, or 1.6%. | Back on Wall Street, the Dow is over 400 points down, or 1.6%. |
| The rally weakened in the final hour, but London’s stock market has still recovered some of Thursday’s big fall. | The rally weakened in the final hour, but London’s stock market has still recovered some of Thursday’s big fall. |
| The FTSE 100 has closed 1.1% higher tonight at 6,778, a gain of 74 points. | The FTSE 100 has closed 1.1% higher tonight at 6,778, a gain of 74 points. |
| That’s just over a third of yesterday’s rout, which cut the value of the Footsie by £56bn, in its worst fall since June 2016. | That’s just over a third of yesterday’s rout, which cut the value of the Footsie by £56bn, in its worst fall since June 2016. |
| Here’s Investing.com senior analyst Barani Krishnan on the Opec deal: | Here’s Investing.com senior analyst Barani Krishnan on the Opec deal: |
| ”Oil traders will react positively to the OPEC deal to cut 1.2 million barrels per day... | ”Oil traders will react positively to the OPEC deal to cut 1.2 million barrels per day... |
| However, the market will also be watching for any signs of cheating by OPEC and punish the cartel accordingly. | However, the market will also be watching for any signs of cheating by OPEC and punish the cartel accordingly. |
| ”The bigger takeaway is what the Saudi Energy Minister would possibly have on his mind as he leaves Vienna today; a Russia that has become as powerful to OPEC as Riyadh and a U.S. that is now a net exporter of oil. | ”The bigger takeaway is what the Saudi Energy Minister would possibly have on his mind as he leaves Vienna today; a Russia that has become as powerful to OPEC as Riyadh and a U.S. that is now a net exporter of oil. |
| “Furthermore, we’ve not even gotten to the Khashoggi fallout and likely Trump dismay over these cuts. One can only speculate at this point to how this will play out for the Saudis and their oil business going forward.” | “Furthermore, we’ve not even gotten to the Khashoggi fallout and likely Trump dismay over these cuts. One can only speculate at this point to how this will play out for the Saudis and their oil business going forward.” |
| European markets are holding onto their gains. | European markets are holding onto their gains. |
| With 30 minutes to go, the FTSE 100 is up 1.9% at 6831, a 127-point swing upwards. | With 30 minutes to go, the FTSE 100 is up 1.9% at 6831, a 127-point swing upwards. |