💙 🔷 Not impressed by Big Tech in Q3? Explore these Blue Chip Bargains insteadUnlock them all

GLOBAL MARKETS-Stocks under a cloud as US political uncertainty adds to growth fears

Published 2018-12-25, 07:51 p/m
© Reuters.  GLOBAL MARKETS-Stocks under a cloud as US political uncertainty adds to growth fears
EUR/USD
-
USD/JPY
-
XAU/USD
-
US500
-
JP225
-
GC
-
ESU24
-
CL
-
US10YT=X
-
MIAPJ0000PUS
-

* MSCI Asia-Pacific index down 0.1 pct

* S&P futures effectively flat after Monday's Wall St slide

* Dollar pressured with US yields near 9-month lows

* Spot gold at a 6-month peak

By Shinichi Saoshiro

TOKYO, Dec 26 (Reuters) - Global stock markets were heading into the year-end under a heavy cloud after another rout this week as U.S. political uncertainty added to heightened concerns over slowing global economic momentum.

Asian equities were shaky on Wednesday following the plunge in Wall Street on Christmas eve in the face of a series of unnerving U.S. political developments, including a U.S. federal government shutdown and President Donald Trump's increasingly hostile stance towards the Federal Reserve chairman.

U.S. Treasury Secretary Steven Mnuchin had also raised market concerns by convening a crisis group amid the pullback in stocks.

S&P 500 emini futures ESc1 were effectively flat, pointing towards a subdued start for Wall Street when the U.S. market reopens after Christmas Day, when many of the world's financial markets were shut.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS dipped 0.1 percent.

Japan's Nikkei .N225 bounced 1.8 percent after diving 5 percent the previous day to a 20-month low and slipping into bear market territory.

"In addition to concerns towards the U.S. economy, the markets are now having to grapple with growing turmoil in the White House which has raised political risk ahead of the year-end," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management.

U.S. stocks have dropped sharply in recent weeks on concerns over weaker economic growth. Trump has largely laid the blame for economic headwinds on the Fed, openly criticizing its chairman, Jerome Powell, whom he appointed.

That has further rattled investors as they grappled with fears of slowing global growth, corporate earnings and U.S.-China trade tensions.

In an effort to reassure investors, Treasury Secretary Mnuchin spoke on Sunday with the heads of the six largest U.S. banks, who confirmed they have enough liquidity to continue lending and that "the markets continue to function properly." bond yields have declined as the market rout, including a steep sell-off in oil, prompted investors to move into safe-haven government debt, adding to the growing pressure on the dollar.

The dollar traded at 110.56 yen JPY= after retreating to a four-month low of 110.00 overnight against its Japanese peer, which also tends to attract demand as a perceived safe-haven during times of market volatility and economic stress.

The euro was 0.25 percent higher at $1.1418 EUR= .

The 10-year U.S. Treasury note yield US10YT=RR stood at 2.747 percent following a descent on Monday to 2.733 percent, lowest since early April.

In commodities, U.S. crude futures CLc1 were up 1.35 percent at $43.11 per barrel after tumbling 6.7 percent on Monday.

Oil prices plunged to the lowest level in more than a year on Monday, as bearish stocks added to fears of an economic slowdown. O/R

Safe-haven gold was well bid, with spot prices XAU= at a six-month peak of $1,270.25 per ounce. (Editing by Shri Navaratnam)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.