Markets 2015 |
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Markets 2015

Live coverage as the slump in Chinese stocks affects world markets.

    A trader works on the floor of the New York Stock Exchange shortly after the market opened in New York September 1, 2015. REUTERS/Lucas Jackson

    Deutsche Bank co-CEO says won't cut China presence

    Deutsche Bank has no plans to reduce its presence in China but the fate of Deutsche's stake in brokerage Hua Xia remained open, co-CEO Juergen Fitschen said on Wednesday.

    Fitschen said foreign banks were all in the process of selling minority stakes in Chinese financial firms. Deutsche is considering selling its 20 percent stake in the Chinese bank to raise cash and reduce its balance sheet exposure.

    "Of course we're not pulling back from China. That's going to be the biggest economy in the world," Fitschen said at a conference. "It's obvious that all of these minority stakes held by foreign investors must be given up."
    FTSE edges higher, buoyed by Ashtead and pharma

    Britain's top-share index edged up on Wednesday, buoyed by well-received results from Ashtead and a rise in pharmaceutical stocks, to recoup a small part of the previous session's fall.

    The FTSE 100 was up 19.10 points, or 0.3 percent, at 6,077.64 by 0752 GMT, after falling 3 percent in the previous session following weak manufacturing purchasing managers' data from China.

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    Forex reserves unwind could reverse bond supercycle

    China's summer shock may mark the end of an era of globalisation that helped define world markets for more than a decade.

    Investor anxiety about the consequences is well-founded.

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    A worker cleans the floor of the New York Stock Exchange after a down day for U.S. markets in New York. REUTERS/Lucas Jackson

    IMF's Lagarde warns of spillover risks from recent volatility

    Recent volatility in global financial markets shows how rapidly risks can spill over from one economy to the next, the managing director of the International Monetary Fund (IMF) said in Jakarta on Wednesday.

    "What has been demonstrated in the last few weeks is how much Asia is at the core of the global economy, and how much disruption in one market in Asia can actually spill over to the rest of the world," Christine Lagarde told a conference in Indonesia's capital.

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    Dimming Southeast Asia growth outlook adds to risks for China

    China's slowing economic growth is denting demand for goods and natural resources from Southeast Asia which, in turn, is hitting demand for Chinese exports in the ASEAN region, the biggest market for China outside the United States and Europe.

    This loop effect has dimmed prospects for a second-half recovery across Southeast Asia, with currencies at multi-year lows and depressed stock markets squeezing income and investment. It also complicates China's efforts to revive growth in its economy, the world's second-largest.

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    China stock probes send shivers through investment community

    Investigations by Chinese authorities into wild stock market swings are spreading fear among China-based investors, with some unsure if they are simply helping with inquiries or actually under suspicion, executives in the financial community said.

    Chinese fund managers say they have come under increasing pressure from Beijing as authorities' attempts to revive the country's stock markets hit headwinds, with some investors now being called in to explain trading strategies to regulators every two weeks.

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    Weak economic data out of China stoked fears the world's second largest economy is slowing down which could hamper global growth. Shartia Brantley reports.

    China jitters send stocks tumbling

    World stocks and commodity prices tumbled on Tuesday, as poor Chinese data saw fears about its economic health intensify.

    After a relatively upbeat few days for world markets, concerns about China were reignited by surveys that showed its giant manufacturing sector shrinking at its fastest pace in three years and its services sector also cooling.

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    A man walks past an electronic board showing Japan's Nikkei average outside a brokerage in Tokyo. REUTERS/Toru Hanai 

    China, euro zone weaken despite world awash with cash

    China's giant manufacturing industry contracted while British and euro zone growth eased in August, rattling markets and reinforcing expectations interest rates may fall again or stay near zero for longer.

    Manufacturers across the world struggled, a series of surveys showed on Tuesday. It came as the People's Bank of China loosened policy for the second time in two months last week and amid 60 billion euros a month of European Central Bank stimulus.

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    IMF's Lagarde sees weaker-than-expected global economic growth

    Global economic growth is likely to be weaker than earlier expected, the head of the International Monetary Fund said on Tuesday, due to a slower recovery in advanced economies and a further slowdown in emerging nations.

    IMF Managing Director Christine Lagarde also warned emerging economies like Indonesia to "be vigilant for spillovers" from China's slowdown, tighter global financial conditions, and the prospects of a U.S. interest rate hike.

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    Weak China August factory, services point to further economic slowdown

    Activity in China's factory sector shrank at its fastest rate in at least three years in August as domestic and export orders tumbled, increasing investors' fears that the world's second-largest economy may be lurching toward a hard landing.

    Even more worrying, China's services sector, which has been one of the lone bright spots in the sputtering economy, also showed signs of cooling, a similar business survey said.

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    FTSE heads for worst one-day fall in over a week

    UK shares fell more than 2 percent on Tuesday, set for their worst one-day fall in over a week and with miners hit hardest after a slump in the manufacturing sector in China - the world's biggest commodity consumer - rattled global markets.

    Declines were broad-based, with only two FTSE 100 stocks were in positive territory at 0815 GMT on Tuesday, London's first trading day of the week after a public holiday on Monday.

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    China to clamp down on forwards trading to curb yuan depreciation

    China's central bank plans to tighten rules on trading of currency forwards from October, sources with direct knowledge of the matter told Reuters, in a move to curb speculation and volatility after a shock devaluation of the currency last month.

    The People's Bank of China has repeatedly intervened to stabilise the yuan since the Aug. 11 devaluation - billed as free-market reform - sent shockwaves through global markets and depressed emerging currencies.

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    Man Group shares fall after report China head helping police probe

    Shares in British hedge fund manager Man Group Plc fell more than 6 percent in early trade on Tuesday following a report that the head of its China unit had been taken into custody as part of a probe into the country's recent market volatility.

    Bloomberg reported on Monday that Man's China chairwoman, Li Yifei, was helping authorities investigating the recent sharp swings in the country's stock market, noting this did not mean she faced charges or had done anything wrong.

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    A worrying sign for the health of China’s overall economy, the country’s manufacturing sector contracted the fastest pace in several years according to twin surveys for August. Meg Teckman reports.

    China market chaos blamed on exodus of regulatory 'turtles'

    At the height of the 2008 financial crisis, as Wall Street slashed jobs, Beijing took advantage of the disarray to poach top Chinese financial talent from overseas to help reform its stock markets.

    By summer 2015, China's Securities Regulatory Commission (CSRC) needed them more than ever; a year-long market boom had imploded in a few weeks, and the government was desperate to keep the crisis from widening.

    But the best and brightest returnees, known in China as "sea turtles", had already left for the private sector, disillusioned and disappointed.

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    An investor looks at an electronic board showing stock information at a brokerage house in Beijing. REUTERS/Jason Lee 

    Stocks fly after Fed official cools September rate hike talk

    Stocks rose around the world on Thursday, following the biggest gains on Wall Street in four years, after a U.S. Federal Reserve policymaker said the case for an interest rate increase next month "seems less compelling" than it was a few weeks ago.

    Increased appetite for risk also lifted crude oil prices further from last week's lows. The price of government bonds and the Japanese yen fell.

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    China's richest man says time for government to abandon high growth rate 'fantasy'

    China's richest man said on Thursday the government needs to give up any "fantasy" of maintaining high economic growth rates, unusually bold comments at a time when Beijing is grappling to contain a market meltdown that has hammered global equities.

    Billionaire Wang Jianlin, speaking after his company Dalian Wanda Group said it had bought World Triathlon Corp for $650 million, added that the key was whether economic growth is "sustainable and safe".

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    New York Fed President William Dudley said a September interest rate hike is ''less compelling'' than a few weeks ago. This comes amid the recent global stock market sell-off. Shartia Brantley reports.

    Surprised by global impact of yuan move, China looks to calm markets

    China has been so surprised by the global reaction to its currency devaluation that it is likely to keep the yuan on a tight leash in the near-term to head off a currency war that could spark a broader financial crisis, policy insiders say.

    Internal calls for the yuan to weaken by up to 10 percent since the Aug. 11 devaluation have faded as top leaders worry that market fears of such a move could fuel further capital outflows, signs of which have intensified in July and August.

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    The Fed chair isn't attending the annual central bankers' shindig in Jackson Hole. Given market turmoil, explain Antony Currie and Richard Beales, she may be relishing her decision.

    Bruising sell-off tests market faith in central banks

    A bruising 48-hour sell-off in global stocks driven by fears of slowing growth has rocked market confidence in central bankers' ability to fight deflation, restore economic health and keep a six-year-old bull run going.

    With the market mood still fragile, central banks appeared on Wednesday to be singing from the same soothing hymn sheet: U.S. Federal Reserve official William Dudley said hiking interest rates next month seemed less appropriate, while a European Central Bank executive board member said the ECB was ready to act if needed.

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    U.S. stocks end the day higher on a positive durable goods report and comments from New York Fed President William Dudley that a September rate hike seems less compelling. Shartia Brantley reports.

    FX pegs under pressure in emerging markets as commodity prices fall

    Plunging commodity prices are testing the viability of emerging currencies' long-standing pegs to the dollar, with some already abandoned as countries balk at the cost of clinging to fixed exchange rates.

    Kazakhstan unshackled its tenge last week, and bets are growing that from Hong Kong to Saudi Arabia, dollar pegs are at risk.

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    Asia stocks take heart from Wall Street rally, China gains

    Asian stocks extended gains on Thursday as a sharp rebound on Wall Street and gains in battered Chinese shares eased fears of a deep and protracted global market rout, while the dollar rallied as risk aversion eased.

    Sentiment was also supported by comments from New York Fed President William Dudley on Wednesday who said the prospect of a September rate hike "seems less compelling" than it was only weeks ago given the threat posed to the U.S. economy by recent market turmoil.

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    An investor holds a fan as she looks at stock information on an electronic board at a brokerage house in Shanghai. REUTERS/China Daily  

    HONG KONG/SHANGHAI (Reuters) - China's turbulent stock markets slipped again on Wednesday, as a double-barrelled blast of central bank stimulus failed to convince investors of Beijing's ability to jolt the world's second biggest economy out of its slowdown.

    After watching share prices tumble around 25 percent in a little more than a week, the People's Bank of China re-entered the fray late on Tuesday, cutting interest rates and further loosening bank lending restrictions.

    The response from China's two main stock indexes - never reliable barometers of the domestic economy - was typically erratic, lurching between gains and losses of more than 3 percent before ending the day modestly lower.

    by elizabeth.culliford edited by Reuters_LindaNoakes 8/27/2015 7:02:05 AM

    At 10:00AM EST the Dow Jones industrial average .DJI rose 312.94 points, or 2 percent, to 15,979.38, the S&P 500 .SPX gained 37.77 points, or 2.02 percent, to 1,905.38 and the Nasdaq Composite .IXIC added 94.83 points, or 2.1 percent, to 4,601.31.

    Stocks had slumped in the last hour of a volatile session on Tuesday as investors were concerned about holding stocks overnight. Read more.

    An investor checks stock information on her mobile phone at a brokerage house in Beijing, August 26, 2015. Asian shares struggled on Wednesday as investors feared fresh rate cuts in China would not be enough to stabilise its slowing economy or halt a stock collapse that is wreaking havoc in global markets. REUTERS/Jason Lee

    U.S. business spending plans measure jumps in July

    A gauge of U.S. business investment plans posted its largest increase in just over a year in July, underscoring the durability of the economic recovery despite a slowing global economy.

    The Commerce Department said on Wednesday non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, increased 2.2 percent last month, the biggest rise since June last year. That was on top of an upwardly revised 1.4 percent increase in June.

    Economists had forecast these so-called core capital goods rising 0.4 percent in July after a previously reported 0.9 percent increase in June.

    The report added to employment, retail sales, housing and consumer spending data in highlighting the U.S. economy's resilience. The string of upbeat reports suggest the Federal Reserve could still raise interest rates this year despite a global markets sell-off, triggered by concerns over China's slowing economy, and policymakers' concerns about low inflation.
    China August official factory PMI seen shrinking to three-year low

    Activity in China's manufacturing sector likely shrank at its fastest pace in three years in August, a Reuters poll suggested, adding to signs of deepening economic weakness which are shaking global financial markets.

    The official manufacturing Purchasing Managers' Index (PMI) is forecast to edge down to 49.7, the weakest level since August 2012, from 50 in July, according to the median forecast of 20 economists in the poll.

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    Oil catches breath near six-and-a-half-year lows after falls

    Oil stabilized on Wednesday after China's central bank moved to support the country's economy, but prices stayed near 6-1/2-year lows as a heavy supply glut kept the market outlook bearish.

    "Oil is catching its breath a bit and seeing if markets have been oversold or not," Capital Economics commodities economist Thomas Pugh said.

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    U.S. stock futures rise but uncertainty remains

    U.S. stock index futures were sharply higher on Wednesday, a day after a rally on Wall Street fizzled as concerns about China's economy overwhelmed a bout of bargain-hunting.

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    Dollar gains as stocks recover, lessens safe-haven bid for yen

    The dollar rose on Wednesday as some calm returned to currency markets with Wall Street stock futures pointing to a firm start and European shares recouping some of their losses, all of which lessened the need to buy safe-haven currencies like the yen.

    China's central bank ramped up its efforts to shore up sentiment, pumping $21.8 billion into the money market, a day after it cut interest rates and relaxed reserve requirements for some large banks.

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    Unsure about China stimulus, investors return to safety of bonds

    Euro zone bond yields fell back on Wednesday as the market euphoria from China's rate cut ebbed and investors feared more stimulus may be needed to halt a slowdown in the world's second largest economy.

    Yields on Europe's top-rated German debt reversed half of a 15 basis point surge seen after Tuesday's intervention by China, while world stocks failed to build on a temporary boost.

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    China to cut trade fees for firms to temper costs

    China will lower some of the export and import fees paid by companies to reduce their costs, the cabinet said on Wednesday after a weekly meeting.

    The government too will quicken the development of China's financial leasing sector to deepen financial reforms, while a fund to support public and private partnerships in investment will also be created, the cabinet said.
    Britain's FTSE recovers some of its China losses

    Britain's top share index fell on Wednesday but recovered some of its losses by midday, as worries over China's economy continued to weigh on equities around the world.

    Data showing an unexpected pick-up in UK retail sales and an increase in mortgage approvals offered encouraging signals on the domestic economy, however.

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Maduro favorite to win condemned Venezuela vote amid tepid turnout

CARACAS/BARQUISIMETO, Venezuela Venezuela's leftist leader Nicolas Maduro looked set to win re-election on Sunday in a seemingly poorly attended vote condemned by foes as the "coronation" of a dictator and likely to bring fresh foreign sanctions. | Video