AVN 67.75 Decreased By ▼ -0.73 (-1.07%)
BAFL 30.82 Decreased By ▼ -0.18 (-0.58%)
BOP 4.84 Decreased By ▼ -0.07 (-1.43%)
CNERGY 3.75 No Change ▼ 0.00 (0%)
DFML 14.05 Decreased By ▼ -0.18 (-1.26%)
DGKC 41.04 Decreased By ▼ -0.60 (-1.44%)
EPCL 47.21 Increased By ▲ 1.84 (4.06%)
FCCL 11.58 Decreased By ▼ -0.13 (-1.11%)
FFL 5.11 Increased By ▲ 0.01 (0.2%)
FLYNG 5.95 Increased By ▲ 0.10 (1.71%)
GGL 11.17 Increased By ▲ 0.76 (7.3%)
HUBC 67.68 Decreased By ▼ -0.82 (-1.2%)
HUMNL 5.71 Decreased By ▼ -0.04 (-0.7%)
KAPCO 28.03 Decreased By ▼ -0.19 (-0.67%)
KEL 2.28 Increased By ▲ 0.02 (0.88%)
LOTCHEM 26.25 Increased By ▲ 1.15 (4.58%)
MLCF 21.58 No Change ▼ 0.00 (0%)
NETSOL 86.53 Decreased By ▼ -1.82 (-2.06%)
OGDC 99.78 Increased By ▲ 0.48 (0.48%)
PAEL 11.08 Decreased By ▼ -0.03 (-0.27%)
PIBTL 4.23 No Change ▼ 0.00 (0%)
PPL 80.05 Decreased By ▼ -2.40 (-2.91%)
PRL 13.26 Decreased By ▼ -0.08 (-0.6%)
SILK 0.90 No Change ▼ 0.00 (0%)
SNGP 43.75 Decreased By ▼ -0.63 (-1.42%)
TELE 6.08 Decreased By ▼ -0.10 (-1.62%)
TPLP 15.88 Increased By ▲ 0.07 (0.44%)
TRG 121.33 Increased By ▲ 1.58 (1.32%)
UNITY 14.04 Decreased By ▼ -0.06 (-0.43%)
WTL 1.31 Increased By ▲ 0.05 (3.97%)
BR100 4,181 Increased By 9.7 (0.23%)
BR30 15,270 Increased By 16.5 (0.11%)
KSE100 41,723 Increased By 200.6 (0.48%)
KSE30 15,746 Increased By 83 (0.53%)
Markets

Stocks slide as Fed stokes economy concerns

  • FTSE 100 down 1.2 percent at 6,041.82 points.
  • Brent North Sea crude down 1.1 percent at $44.88 per barrel.
Published August 20, 2020
Follow us

LONDON: Stock markets slid Thursday after a sobering Federal Reserve assessment of the US economic outlook and as stimulus talks remained deadlocked.

The dollar steadied, while oil prices dropped after OPEC ministers stuck to an agreement to lower oil production.

"The fallout from the Fed minutes continues across markets, with European indices in the red and US futures pointing to a weaker open after days of gains," noted Chris Beauchamp, chief market analyst at IG trading group.

With the coronavirus continuing to ravage the country and containment measures keeping businesses closed, minutes from the Fed's July meeting showed it was concerned about the recovery as help for small businesses, extra money for the jobless and direct payments to all Americans come to an end.

Bank boss Jerome Powell has led repeated calls for more government support for the economy.

The "minutes are casting a shadow over markets and underline that any recovery is not going to be a straight line of advances", said Neil Wilson of Markets.com.

"The Fed layered on the risks and caution thick, but didn't come up with any sweeteners for the market in the shape of more easing."

The focus is now on US jobless claims due out later Thursday for an up-to-date snapshot of the economy.

World equities have surged from a March bottom thanks to a wall of cash support from the Fed and other central banks, but with the multi-trillion-dollar fiscal rescue hammered out earlier this year now running out, US lawmakers are under pressure to stump up more.

While Democrats and Republicans dig their heels in on a new package, the chances of anything coming soon are slim.

Adding to the downward pressure were ever-present China-US tensions, with the White House withdrawing from three bilateral deals with Hong Kong on extradition and taxation over the city's controversial new security law.

The move comes after the US revoked Hong Kong's preferential trade status and is the latest blow in an increasingly fractious relationship between the superpowers that has fanned concerns about their crucial trade pact signed in January.

Still, there was some joy after Beijing said it would hold telephone talks with Washington on that agreement, after a planned high-level call was postponed last weekend.

US President Donald Trump said earlier this week that he had called the discussions off, adding he "didn't want to talk to China right now".

Key figures around 1045 GMT -

London - FTSE 100: DOWN 1.2 percent at 6,041.82 points

Frankfurt - DAX 30: DOWN 0.9 percent at 12,863.68

Paris - CAC 40: DOWN 1.1 percent at 4,924.51

EURO STOXX 50: DOWN 1.0 percent at 3,284.61

Tokyo - Nikkei 225: DOWN 1.0 percent at 22,880.62 (close)

Hong Kong - Hang Seng: DOWN 1.5 percent at 24,791.39 (close)

Shanghai - Composite: DOWN 1.3 percent at 3.363.90 (close)

New York - Dow: DOWN 0.3 percent at 27,692.88 (close Wednesday)

Euro/dollar: DOWN at $1.1840 from $1.1841 at 2100 GMT

Dollar/yen: DOWN at 105.98 yen from 106.12 yen

Pound/dollar: UP at $1.3124 from $1.3093

Euro/pound: DOWN at 90.21 pence from 90.40 pence

West Texas Intermediate: DOWN 1.1 percent at $42.44 per barrel

Brent North Sea crude: DOWN 1.1 percent at $44.88 per barrel

Comments

Comments are closed.

Stocks slide as Fed stokes economy concerns

Rupee up 1.08%, settles at 273.33 against US dollar

OGRA calls for action against hoarders of petrol, diesel in Punjab

Fed's Waller sees no sign of 'quick' decline in inflation

KSE-100 increases 0.48% owing to hopes of breakthrough in talks with IMF

ECP should announce election schedule for KP, Punjab: President Alvi

Holding polls in Punjab can be difficult as operation against militants underway, IG tells ECP

Amir Dogar among 12 PTI workers arrested in Multan

Turkish bourse shut for 5 days after quake, Wed trades cancelled

More survivors found as Turkiye-Syria quake toll tops 11,200

Google to soon add generative AI features in search results