Stock market PANIC: Global stocks in the RED as fears over growth slowdown intensify

European stocks opened lower today with markets also being compounded by further Brexit developments. Prime Minister Theresa May announced MPs will vote on the conditions of Britain leaving the European Union (EU) in the week beginning the 14 January. The FTSE 100 was down by 39.54 points, a difference of 0.58 percent at just after 10:00 GMT. At the same time of trade, the pan-European Stoxx 600 was trading lower by 1.15 points, down 0.33 percent.

While in Paris, the CAC 40 had dropped by 18.47 points, 0.38 percent lower, as the DAX clawed up 37.66 points after initially opening 0.30 percent lower.

The losses were felt worldwide as Asian share markets  sank while a turbulent night for Wall Street saw stocks skid to their lowest levels in more than a year.

MSCI’s broadest index of Asia-Pacific shares outside Japan shed 0.9 percent in mid-afternoon trade while Japan’s Nikkei lost 1.8 percent.

Chinese shares slumped, with the blue-chip index dropping 1.1 percent and Hong Kong’s Hang Seng index down 1.2 percent.

Meanwhile, overnight trading in Wall Street saw the S&P 500 lose 2.08 percent to plunge to its lowest since October 2017.

The Nasdaq Composite dropped 2.27 percent, with Amazon, one of the best performing shares this year, sliding 4.5 percent.

The Dow Jones ended the trading day down more than 500 points.

A profit warning from ASOS, shocked investors, sending US consumer discretionary shares down 2.8 percent

Tatsushi Maeno, senior strategist at Okasan Asset Management, said: “US retailers have been stocking up consumer goods from China before hikes in tariff, piling up inventories.

“From now their costs are seen rising next year.

“That may have been kind of known to everyone but it’s becoming reality.”

In addition, the National Association of Home Builders Housing Market Index indicated US homebuilder sentiment had fallen to a three-and-a-half-year low.

It was the second consecutive month of weak reading.

The gloomy data came after weak economic news from China and Europe late last week.

Disappointing figures from China revealed retail sales in the world’s second-largest economy grew at the weakest pace since 2003 and industrial output rose by the least in nearly three years.

While in Europe, borrowing costs were revealed to have tumbled to their lowest point in more than four years.

The ‘flash’ eurozone purchasing managers’ index of business activity in the bloc, fell to to 51.3 in December, its weakest since November 2014.

Harumi Taguchi, principal economist at IHS Markit, said: “The likelihood is growing that more weak figures will come out compared to what is currently being expected.”

The Federal Reserve is widely expected to raise interest rates on Wednesday, which would be its fourth hike this year.

But many investors now expect signs of economic turbulence to prompt the Fed to signal a slowdown in the pace of tightening next year.

On Monday, US President Donald Trump and his top trade adviser ratcheted up their criticism of the central bank’s monetary tightening.

President Trump tweeted: ”It is incredible that with a very strong dollar and virtually no inflation, the outside world blowing up around us, Paris is burning and China way down, the Fed is even considering yet another interest rate hike. Take the Victory!”

source: express.co.uk