FTSE 100 LIVE: Asia stocks hindered by US China tensions as Wall Street decline takes toll

Investors have been seeking safer harbour in assets such as the Japanese yen as worries over the economic recovery in China take over. Overnight data showed recovery in the US labour market stalling and Wall Street indexes fell for a second straight session. The S&P 500 ended down 0.84percent, and the Nasdaq dropped 1.27percent. The Nasdaq’s losses put the index down roughly 10p percent from a record high hit early in September and have it tracking for its worst month since March.

Meanwhile, MSCI’s broadest index of Asia-Pacific shares outside Japan looked set to end the week 1 percent ahead following two weeks of tech-led losses. It rose 0.2percent on the day while market moves around the region were small.

Japan’s Nikkei edged 0.1percent higher while US stock futures were soft, with S&P 500 futures down 0.2percent, though Nasdaq 100 futures turned positive by the middle of the Asia session to trade 0.07 percent higher.

“The bigger picture issue is that markets, particularly growth and tech stocks, have run very hard into the end of August, which has left them somewhat vulnerable,” said AMP Capital chief economist Shane Oliver.

“There’s uncertainty ahead of the US elections… China-US tensions keep creeping in and on top of that there’s now uncertainty about how the recovery will proceed from here in the absence of more stimulus in the US.”


2pm update: Currency latest

The pound at 2pm was 1.2971 dollars compared to 1.2950 dollars at the previous close.

The euro at 2pm was 0.9129 pounds compared to 0.9132 pounds at the previous close.

12.00pm update: Eat Out to Help Out fails to help restaurant groups

Restaurant groups have been shedding points today, after ONS data indicated the Government’s Eat Out to Help Out scheme has failed to lead to a permanent rise in visitors.

ONS data indicated under a third of Brits said they had eaten out between September 9 and 13 – down 38 percent on two weeks ago.

10.45am update: Currency latest

The pound at 10am was 1.2988 dollars compared to 1.2950 dollars at the previous close.

The euro at 10am was 0.9132 pounds compared to 0.9132 pounds at the previous close.

9.20am update: EU markets suffer sluggish open

Like the FTSE, EU markets are struggling on open today.

The Euronext 100, DAX, CAC 40 and Swiss Market Index are all down or hovering near zero.

Euronext is down 0.25%, DAX is down 0.42%, CAC is down 0.03% and Swiss Martet Index is up just 0.16%.

8.10am update: FTSE drops on open

The FTSE has dropped on open, mirroring yesterday’s early-morning blow.

The UK index closed at 6,049 yesterday. It has already fallen to 6,037.

This marks a drop of 12 points in just 10 minutes this morning.

More to follow…


Leave a Reply