Daily Financial Markets Report | Wednesday, 16 October 2014

sacciDaily Financial Markets Report sources information from Business Day, Reuters, JSE Ltd and others.

Highlights

 Wall Street flirted with its worst decline in more than 3 years in a roller -coaster day of trading that culminated with shares recovering from the depths of what began as a bona fide market rout Wednesday. Europe’s benchmark stock index plunged on Wednesday, slipping into a technical correction as concerns about global growth weighed on the investing mood for a seventh straight day. A global selloff extended into Asia with stocks in Japan slumping over 2% to their lowest since May as growing concerns over economic growth around the world took its toll on the region.

 Spot gold is currently trading at US$ 1 240.80/oz. and platinum at US$ 1 254.50/oz. Brent crude oil is currently trading at US$ 83.78 per barrel.

 The US dollar is currently trading at 1.28 to the euro, 1.59 to the pound and will buy 106.14 Japanese Yen or 11.06 South African Rand.

International markets

Wall Street flirted with its worst decline in more than 3 years in a roller -coaster day of trading that culminated with shares recovering from the depths of what began as a bona fide market rout Wednesday. Europe’s benchmark stock index plunged on Wednesday, slipping into a technical correction as concerns about global growth weighed on the investing mood for a seventh straight day. A global selloff extended into Asia with stocks in Japan slumping over 2% to their lowest since May as growing concerns over economic growth around the world took its toll on the region.

The S&P 500 briefly turned negative for the year before rebounding and on intraday basis recorded a 9.8% decline from peak to trough. The benchmark index closed down 15.21 points, or 0.8%, to 1 862.49. The Dow Jones Industrial Average fell as much as 460 points, but finished down 173.45 points, or 1.1%, to 16 141.74. The Nasdaq Composite at one point entered correction territory, falling more than 10% from its previous peak, but regained its footing, finishing with modest losses. The tech-heavy index closed down 11.85 points, or 0.3%, to 4 215.32.

The Stoxx Europe 600 index dropped 3.2% to 311.36, and marked an 11% fall from its 2014 closing high of 349.71. Germany’s DAX 30 index slumped 2.8% to 8 571.95 on Wednesday, the lowest close since October last year. France’s CAC 40 slid 3.6% to 3 939.72. The FTSE 100 fell 2.8% to 6 211.64, the lowest finish since late June 2013.

In early trading in Asia Thursday, Australia’s S&P/ASX200, Taiwan’s Taiex and Hong Kong’s Hang Seng were each down more than 1%. The Shanghai Composite was off by only 0.2% while the currency touched a fresh seven-month high, showing that China has remained fairly resilient so far to the global selloff.

The US dollar is currently trading at 1.28 to the euro, 1.59 to the pound and will buy 106.14 Japanese Yen or 11.06 South African Rand.

Domestic markets

The JSE Top-40 index dropped 2.19% to 41 572, a level last seen in the middle of March. The broader All-share index fell 2.13% to 46 673.

Commodities

Spot gold is currently trading at US$ 1 240.80/oz. and platinum at US$ 1 254.50/oz. Brent crude oil is currently trading at US$ 83.78 per barrel.

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