Global equity markets extend their sharp sell-off

Thursday, October 16, 2014

Asian equity markets retreated sharply to hit their lowest level in six months, tracking sharp declines in Wall Street. The Nikkei index plunged more than 330 points (-2.22%), breaching below the key level of 15,000. The Hang Seng index fell over 240 points (-1.0%) as the global gloomy macroeconomic picture weighed on market sentiment overshadowing the recent Chinese optimistic data. China’s foreign direct investment (FDI) rose unexpectedly by 1.9% y/y in September, beating analysts’ expectations of a 14% decline.  

European equity markets continued the sharp sell-off in early trade this morning, as heavy losses in Asia and the US set a further bearish tone across European economies, triggering fresh concerns about poor economic conditions wordlwide. The CAC, DAX and London equity benchmark traded mixed in early trade, while the euro held around 1.276 after testing a spike at 1.2886 yesterday.

Crude oil prices extended losses in early trading this morning following a new round of disappointing US economic data which dampened market sentiment. WTI front month futures tested support at $80.0 yesterday to finish the session at $81.78. However, this morning WTI front month contract continued its sharp downside momentum heading again towards $80 per barrel ahead of the release of US weekly jobless claims and key oil fundamentals data from the weekly EIA oil inventories report. Brent futures breached below $83 per barrel in early trade hitting a fresh 4-year low.

WTI Front month

CLX4 Comdty (WTI CRUDE FUTURE  N 2014-10-16 09-19-54

 

Events for today: 

1000

EZ

Sep

Inflation

1330

US

w/e

Jobless Claims

1415

US

Sep

Industrial & Mfg Output

1500

US

Oct

NAHB Housing Market Survey

1500

US

Oct

Philly Fed Business Index

1530

US

w/e

EIA Energy Stocks

1530

US

w/e

EIA Nat Gas

 

All times UK Local Time

 

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