Global Markets Rocked as US-China Trade and Tech Rift Deepens

THE GUARDIAN: Shares fall sharply in Asia, Europe and North America in intensifying war of words

The deepening trade and technology war between the US and China has sent global stock markets sharply lower and prompted a warning from the IMF of the increasing risks to the global economy.

Shares fell sharply in Asia, Europe and North America on a day that saw investors alarmed by the intensifying war of words between Washington and Beijing, poor news on the American economy, and political chaos in Britain.

Hours after the Japanese conglomerate Panasonic joined the list of companies cutting its ties with the Chinese telecoms giant Huawei, the US secretary of state Mike Pompeo on Thursday accused Huawei’s chief executive of lying when he said the company had no links to China’s communist government.

In a marked toughening of its rhetoric, China demanded that Donald Trump’s administration change course, while the country’s charge d’affairs in London said the UK could suffer “substantial” loss of investment if Huawei were banned from involvement in Britain’s 5G network. » | Larry Elliot, Economics editor | Thursday, May 23, 2019

Fears Grow of Repeat of 2008 Financial Crash as Investors Run for Cover

THE GUARDIAN: As leaders gathered in Davos, FTSE 100 was gripped by panic selling and entered bear market with Dow Jones also plunging

Fears that the global economy could be heading for a repeat of the 2008 financial crash have sent shockwaves through financial markets – prompting a rush to safe havens by investors.

Oil prices fell to a fresh 12-year low on Wednesday and metal prices tumbled in response to warnings that China’s slowdown could derail the global recovery at a time when central banks, which came to the rescue in the credit crunch, have only limited firepower.

As world and business leaders gathered for the annual World Economic Forum in Davos, Switzerland, the FTSE 100 was gripped by panic selling, especially of mining and oil companies that have been hit hard by the global slowdown in manufacturing and trade. Earlier this week China recorded the slowest rate of economic growth for 25 years. » | Phillip Inman, economics correspondent | Wednesday, January 20, 2016

Global Shares Plunge as Chinese Losses Rattle Markets

BBC: Stock markets in London, Paris and Frankfurt have fallen sharply as fears of a Chinese economic slowdown continue to haunt investors.

London's FTSE 100 index was down by 2.6% in morning trade, while major markets in France and Germany lost nearly 3%.

Shares in Asia were hit overnight, with the Shanghai Composite in China closing down 8.5%, its worst close since 2007.

The Chinese authorities tried in vain to reassure investors.

In addition, oil prices have plunged to six-year lows, as traders worry about slowing growth in the world's second-largest economy. » | Monday, August 24, 2015

Euro Slides, Stock Markets Fall as China, Europe Fuel Fears for World Recovery
THE TELEGRAPH: The FTSE 100 joined a fresh global market sell-off and the euro hit new four-year lows on jitters for the world economy after a fall in Chinese factory production and worries over the ability of European banks to weather a escalating eurozone crisis.

The euro sank fell more than 1pc against the dollar to $1.2115 as deteriorating sentiment along with rising tensions in the Middle-East following Israel's storming of Gaza-bound aid ships bound fuelled safe-haven demand for the dollar. >>> | Tuesday, June 01, 2010

Markets Left Reeling After Week Of Global Drama
THE TELEGRAPH: No one – not Britain, the US nor Japan – is immune to a Greek-style debt crisis, one of Europe's chief policymakers has warned, as investors reeled from a week of market drama.

The sovereign debt crisis could claim new victims, including those outside the euro area, according to Lorenzo Bini Smaghi, a member of the European Central Bank's executive board. He was speaking as finance ministers met in Brussels to discuss their response to the crisis.

The new Chancellor, George Osborne, urged them to cut deficits faster and with more urgency, pointing towards the £6bn of in-year spending cuts he is set to unveil on Monday.

The warning came on another tense day for capital markets worldwide.

London's benchmark FTSE 100 dipped briefly beneath the 5,000 mark, recovering later in the day but nevertheless closing down 10.2 points at 5062.93. The FTSE has fallen by 3.8pc this week alone, and is 13pc down on its peak in April.

Although markets across Europe spent most of the day in negative territory, they recovered in late trading after German politicians backed their part in the $1 trillion safety net euro area members are constructing to prevent re-runs of the Greek economic catastrophe. On Wall Street, the Dow Jones closed up 1.3pc at 10,193.39 points. Read on and comment >>> Edmund Conway, Economics Editor | Friday, May 21, 2010

'Perfect Storm' as Market Tremors Hit China, Europe and the US
THE TELEGRAPH: Capitulation fever has swept global markets on triple fears of faltering recovery in the US, Chinese credit curbs and Europe's intractable escalating debt crisis.

"It is the perfect storm," said Andrew Roberts, credit strategist at RBS. "People have been too complacent about risky assets. This is a global deflation scare and people need to get ready for falls in US and European bond yields to 2pc."

The global stock market sell-off continued for a third day on Friday in Europe and Asia. London's FTSE 100 slid 0.6pc, Germany's DAX lost 1pc, France's skidded CAC 0.8pc and Japan's Nikkei plunged 2.5pc as world equities head for the biggest monthly fall since October 2008.

Wall Street shares plunged 3pc on Thursday after new jobless claims in the US rose to 471,000 last week, the biggest jump in three months. The S&P 500 index of shares fell to 1080, triggering automatic stop-loss sales as it crashed through support on its 200-day moving average. Read on and comment >>> Ambrose Evans-Pritchard, International Business Editor | Friday, May 21, 2010

FTSE 100 Dives 10pc as Global Markets Slide
THE TELEGRAPH: The FTSE 100 plunged more than 10pc this morning as fears over a global banking crisis and recession combine to rout stock markets around the world.

The UK's leading share index fell below 4,000 points for the first time in five years as equity markets across Europe were hammered after steep declines overnight in Asia and the US.

By 10am the FTSE had recovered slightly to 4,077 but was still showing heavy losses. "I'm sitting on my hands and quite a few people I talk to are doing the same," one trader said.

Shares in banks and commodity-based companies have been particulary hit with HBOS losing 18pc, Barclays 13pc and Rio Tinto 11pc.

"Fear leads to more fear," said Andy Brough, fund manager at Schroders, said. "Market makers are taking pre-emptive action and marking down prices before people start selling. The big institutions are sitting on their hands, the volumes are very low."

He said banking stocks were being badly hit because credit default swaps tied to the collapsed investment bank Lehman Brothers are due to be settled by this evening, revealing the banks which were most exposed. FTSE 100 Dives 10pc as Global Markets Slide >>> By Graham Ruddick | October 10, 2008

THE GUARDIAN:
Financial Crisis: Panic Selling Piles Pressure on G7 Leaders >>> Graeme Wearden and Julia Kollewe | October 10, 2008

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