industry

Volatile global markets ‘in a world of pain’ rebound after 500-point losses


The Dow Jones Industrial Average reversed last Friday’s 508-point collapse with the bounce back put largely down to impressive tech shares performing well. As the day opened, Stephen Innes, analyst at brokerage OANDA, described “another day, another reason to sell risk. Equity markets remain in a world of pain with everyone in search of a very elusive silver lining.”

However the volatile markets unpredictably performed exceptionally well to recover last week’s losses.

Major US indexes ended the day in the green, reported Bloomberg, buoyed by rallies in Facebook and Microsoft shares.

Tom Essaye, a former Merrill Lynch trader, told the financial news website: “Tech is running this market, it’s unbelievable.”

The American markets were unfazed by Theresa May postponing the Brexit vote despite investor fears over the UK leaving the European Union without a deal.

CNBC reported the DJIA closed 34.31 points higher at 24,423.26 while the N&P rose 0.2 percent to 2,637.72 and the Nasdaq Composite jumped 0.7 percent to 702.62.

It attributed the gains to Facebook shares which rose 3.2 percent as well as stocks in Amazon, Netflix and Google parent company Alphabet Inc who all saw gains of more than 0.6 percent.

Last Friday’s plummet meant the Dow, S&P 500 and Nasdaq all recorded their worst weekly performances since March after US-China trade spat boiled over.

Mark Newton, managing member at Newton Advisors, described the “volatility” in a note to clients, according to CNBC.

Mr Newton said: “”Stocks reversed the prior week’s rally violently over the last few days, and now have reached the bottom of the recent trading consolidation that’s been in place for the past few months.

“Seeing a larger breakdown in the indices at this point would confirm that stocks have definitely started a larger correction that should eventually lead to a bear market.

The good news did not translate to sterling, which plunged against the dollar as soon as Theresa May announced the Brexit vote would be delayed.

The pound slumped to a 2-month low making it the worst performing major currency of the day as it reached its lowest level against the dollar since May 2017.



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