Stock markets slide again as selloff continues – business live …
A screen showing the Nikkei 225 Stock Average in Tokyo, Japan, as it slid earlier today. Photograph: KIYOSHI OTA/EPA
Good morning and welcome to our rolling coverage of events across the financial markets, the global economy, the business world and the eurozone.
Asian markets have taken a pummelling overnight as the share rout which began last week hit its largest stock exchanges.
Fears over the emerging markets, the impact of the US Federal Reserve winding back its stimulus programme, and a possible slowdown in China all alarmed traders.
Japan’s Nikkei dived 2.5% to a two-month low, and Hong Kong’s Hang Seng lost 2% in a jittery day’s trading.
The main EU markets are likely to be under pressure this morning too, with the FTSE 100 likely to lose another 30 points when trading begins (it was being called down 70 points earlier this morning…)
Michael Hewson of CMC Markets blamed:
a trifecta of concerns about weak US earnings, Chinese growth, and financial market instability in countries like Argentina, Ukraine and Turkey rippled out into other emerging markets.
Investors are bracing for the Fed to possibly cut another $10bn off its bond-buying stimulus programme when policymakers meet this week.
As Ian Williams of Peel Hunt put it:
The trouble may have started in the emerging market currencies, but this morning the likely continuation of Fed tapering this week, and renewed fears of a more severe Chinese slowdown seem to be taking the blame.
But that emerging market currency crisis hasn’t gone away, after last week’s tumble in the Argentinian peso forced its government to relax currency controls. Reuters reports that shopkeepers spent the weekend slapping new price tags on imported goods, to reflect the 20% slump in the peso’s value this last week.
And if that wasn’t enough to worry the markets, there’s a meeting of Eurogroup finance ministers later today, where Greece is likely to be ticked off for not making more progress implementing its austerity programme.
I’ll be tracking all the main action through the day
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Stock markets slide again as selloff continues – business live …
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