Classifieds | Archives | Jobs | About TGT | Contact | Subscribe
 | 
Last updated 10 minutes ago
Printer Friendly Version | TGT@Twitter | RSS Feed |
HOME LOCAL MIDEAST ASIA WORLD BUSINESS SPORT OPINION WRITERS
Stocks jarred by emerging markets’ rout
September 07, 2018
 Print    Send to Friend

LONDON: World equities were in a jittery mood on Thursday as an emerging markets rout posed a major headache for investors, who are already on red alert over Washington’s trade war with Beijing, dealers said.

In Europe, Frankfurt and London were lower, after heady declines of more than two per cent over the previous two sessions, while Paris eked out a small gain.

Wall Street stocks were mostly lower early on Thursday, with technology shares lagging, amid lingering trade war uncertainty and mixed economic data.

About 10 minutes into trading, the Dow Jones Industrial Average was at 26,010.71, up 0.1 per cent.

The broad-based S&P 500 dipped 0.1 per cent to 2,885.42, while the tech-rich Nasdaq Composite Index shed 0.4 per cent to 7,962.93.

“There are tentative signs that this week’s risk sell off, particularly in emerging markets, could be taking a breather,” noted research director Kathleen Brooks at trading firm Capital Index.

But Asian bourses deepened their losses as concerns about contagion from emerging markets (EM) − centred on Argentina, Turkey and South Africa − frayed investor nerves, while sentiment was also dented by the possibility of further US tariffs on China.

Meanwhile, India’s rupee hit a new record low of 72 to the dollar.

“Animal spirits take hold very quick because investors outside of emerging markets often have EM exposure these days. What happens in the sphere can have an impact on investment elsewhere,” Brooks told AFP.

“Also, contagion works because problems in EM can make people fearful of risky assets elsewhere, and risk in general.” Worries persist that EM crises will infect the broader global economy and derail growth.

“Emerging markets turmoil reflects concern about the impact of trade wars on growth, tightening monetary policy and a turn lower in EM growth,” added Kit Juckes, macro strategist at French bank Societe Generale.

“Turkey, South Africa and Argentina are all minor players in global markets but they are all countries with sizeable current account deficits who are in danger of running into international funding problems.

Agencies

Add this page to your favorite Social Bookmarking websites
Comments
 
Post a comment
 
Name:
Country:
City:
Email:
Comment:
 
    
    
Related Stories
Stocks boosted by hopes of talks, tech, and Turkey
LONDON: World stocks hit their highest levels in over a week on Friday as expectations grew that the United States and China would open new trade talks, while an interest..
World stocks hit by trade strain
LONDON: World stocks slipped back towards three-week lows on Tuesday, on ongoing concerns over the trade dispute between Washington and Beijing, while the pound hovered ..
Markets stumble on China tariff fears
LONDON: World equities stumbled on Friday as investors feared that the United States will ramp up its trade war with China by imposing fresh tariffs, dealers said. US ..
World stocks on edge over trade worries
LONDON: Global stock markets diverged Monday, with a weak pound lifting London’s benchmark FTSE 100 index and offsetting trade war concerns dragging down equities elsewhe..
ADX-listed firms’ market cap at Dhs526b
ABU DHABI: Abu Dhabi Securities Exchange’s listed companies market cap reached Dhs526 billion, by the end of August; with a remarkable increase in ADX general index by 1..
FRONTPAGE
 
GALLERY
 
PANORAMA
 
TIME OUT
 
SPORT
 
 
Advertise | Copyright