A sharp sell-off in Asian equity markets

Tuesday, October 14, 2014

Asian equity markets remained under pressure overnight, tracking sharp declines in Wall Street. The Nikkei index plunged more than 360 points (-2.4%) breaching below the key level of 15,000, towards 14,930. The Hang Seng index slid lower (-0.17%) breaching below 23,100, while the recent robust import/export data provides some support. 

The Nikkei Index breaches below 15,000

NKY Index (Nikkei 225)  Daily 30 2014-10-14 08-46-33

European equity markets reversed and slid lower in early trade this morning. UK BRC retail sales fell by 2.1% in September against expectations of a 1.0% rise. The DAX and CAC indices declined 0.2% early trade, while the London equity benchmark retreated towards 6300. The release of the German ZEW economic survey could provide further signs about the current economic conditions and expectations.

In the US, the Dow Jones extended its sharp downside momentum after falling by 223 points (-1.35%) following the recent gloomy macroeconomic picture. The S&P 500 and Nasdaq also retreated 1.65% and 1.46%, respectively.

Dow Jones Index

INDU Index (Dow Jones Industrial 2014-10-14 08-46-14

Crude oil prices continued to remain under pressure. The WTI front month futures held around $85 per barrel while Brent front month futures extended declines towards $88 per barrel. According to Thomson Reuters, key Middle East oil producers signalled that they would keep crude oil production high even if that meant lower crude oil prices. In addition, Russia has been diverting more of its crude oil east as oil deliveries to China hit a new record last month. It seems that the recent geopolitical tensions between Russia and the West have indicated a recent shift in oil flows.  

Brent front month futures

COX4 Comdty (BRENT CRUDE FUTR  N 2014-10-14 08-45-06

 

Events for today:

 

0001

UK

Sep

BRC Retail Sales

1000

DE

Oct

ZEW Economic Survey

1000

EZ

Aug

Industrial Production

 

All times UK Local Time

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