May 25, 2019
Latest News

Global stocks waver as Brexit, growth concerns linger

Madrid, Mar 13 (efe-epa).- Global stocks wavered on Wednesday as concerns around global growth weighed on investor sentiment and an impasse in the United Kingdom on a Brexit deal rippled across the European market, according to a report from Dow Jones Newswires supplied to EFE on Wednesday.

The Stoxx Europe 600 was up 0.1 percent in early morning trading. United States futures pointed to opening losses of 0.5 percent for the Dow Jones Industrial Average of and 0.1 percent for the S&P 500.

Asian stocks were mostly lower with the Shanghai Stock Exchange down 1.1 percent, Hong Kong's Hang Seng Index dipping 0.4 percent and Japan's Nikkei dropping 1 percent.

In Europe, investors were digesting news from London overnight, where British lawmakers rejected a Brexit deal. Parliament is now set to vote on Wednesday on whether a hard Brexit, where the country barrels out of the EU without an agreement at the end of the month, must be avoided.

The British pound was up 0.5 percent on the dollar and the euro Wednesday, following a 1 percent drop on Tuesday after the UK's attorney general said Prime Minister Theresa May's revised Brexit deal didn't eliminate the risk that the UK would be stuck in a customs union with the bloc.

The UK's FTSE 100 index, which is dominated by large international businesses, as well as its FTSE 250 were both nearly flat, the Dow Jones report added.

"The stakes are getting higher and higher, so any bit of good or bad news is going to cause swings in the market," said Brian Hilliard, chief UK economist at Société Générale.

For many investors the major concern is the political uncertainty around a prolonged negotiation, which is weighing on consumer sentiment and has businesses putting investment on hold.

"A delay here is probably the worst thing that can happen because it just increases the period of uncertainty," said Aaron Anderson, senior vice president of research at Fisher Investments. "Investors don't give the economy enough credit for being adaptive."

Economists have flagged concerns that the impact of a hard Brexit on the wider region have been underestimated, with the focus on the economic fallout for the UK itself.

European investors have been on edge this week after European Central Bank President Mario Draghi announced major cuts to growth and inflation forecasts for the eurozone, following a slew of weak economic data from the region and ongoing trade tensions that weigh particularly on the region's open economy.

"The questions surrounding China, the strength of the economy, the Chinese trade wars and Brexit all combined is particularly sensitive for Europe," said David Slater, a portfolio manager at Trium Capital, the London hedge fund.

The yield on 10-year German government bonds, also known as bunds, rose to 0.062 percent on Wednesday, having edged toward negative territory in recent sessions as the gloomy growth outlook in the region pushed European investors toward safe haven assets.

Meanwhile, concerns around growth in the US continued after new inflation data published on Tuesday came in weaker than expected, adding to disappointing payroll data last week.

"So many records being set with respect to our Economy [sic]," President Trump said on Twitter, labeling the economic improvement a "beautiful thing to watch."

The WSJ Dollar Index, which tracks the dollar against a basket of 16 currencies, was broadly flat on Wednesday, added the Dow Jones report.

The 10-year US Treasury edged up to 2.616 percent, from 2.605 percent on Tuesday. Yields move inversely to prices.

Elsewhere in commodities, global benchmark Brent crude oil was up 0.3 percent at $66.84 a barrel.

By Avantika Chilkoti

News history
Waiting in long lines to buy food is Cuba's current crisis and biggest joke

By Atahualpa Amerise

Mexico's plans for embattled energy sector spark criticism

Eduard Ribas i Admetlla

Champions final to generate 123 million euros, 66 million will stay in Madrid

Madrid, May 24 (efe-epa).- The UEFA Champions League final between Tottenham Hotspur and Liverpool at the Wanda Metropolitano stadium in Madrid will...

Experts stress using digital tools to make Colombian companies more dynamic

Cali, Colombia, May 23 (efe-epa).- Increasing human beings' use of digital tools is the vehicle whereby Colombia's business sector will develop, several...

Trump pledges another $16 bn for farmers hurt by Chinese tariffs

Washington, May 23 (efe-epa).- President Donald Trump on Thursday approved a second aid package for US farmers, this one for $16 billion, with the aim of...

China, Brazil agree to boost trade, cooperation

Beijing, May 23 (efe-epa).- The vice presidents of China and Brazil presided here Thursday over the fifth gathering of the Sino-Brazilian High-Level...

ECB officials warned Eurozone economy may not rebound as expected

By Tom Fairless

Xi pushes for innovation so that China wins the new technological Cold War

By Jesus Centeno

FAA's acting chief won't predict when Boeing 737 MAX will return to flight

By Andy Pasztor

Deutsche Bank CEO signals more cuts to investment bank

By Jenny Strasburg

Israel blockades stem exports from Gaza

By Laura Fernández Palomo

Carlos Ghosn attends first preliminary hearing in Tokyo ahead of trial

Tokyo, May 23 (efe-epa).- The former head of Nissan and Renault on Thursday attended the first preliminary hearing ahead of his trial, as his defense team...

Massive seaweed influx in Cancun's hotel zone

Cancun, Mexico, May 22 (efe-epa).- The hotel zone along the beaches in the Mexican resort city of Cancun on Wednesday experienced a massive influx of...

Journalism in digital age must rethink how to reach its audience

By Gina Baldivieso

Geneva, May 22 (efe-epa).- Venezuela's health minister said here Wednesday that economic sanctions imposed by Washington are to blame for shortages of...

Bucking US sanctions, American Airlines expands flights to Cuba

Havana, May 22 (efe-epa).- American Airlines, the leading international carrier serving Cuba, said Wednesday that it intends to offer additional flights to...

The UK's British Steel begins insolvency proceedings

London, May 22 (efe-epa).- British Steel Ltd., the United Kingdom's second-largest steelmaker, has started insolvency proceedings after the country's High...

Rare earths emerge as China's possible trump card in trade war against US

Jesus Centeno

India's antitrust watchdog surveys e-commerce firms including Amazon, Walmart

New Delhi, May 22 (efe-epa).- India's antitrust watchdog is assessing the domestic e-commerce sector, a step that could have consequences for Amazon.com...

Internal review reveals sexual assault cases in New Zealand parliament

Sydney, Australia, May 22 (efe-epa).- The New Zealand parliament on Wednesday admitted that at least three cases of serious sexual assault had taken place...

UN forecasts global economy to grow 2.7 pct. in 2019, 2.9 pct. in 2020

United Nations, May 21 (efe-epa).- The United Nations on Tuesday downgraded its forecast for world economic growth, announcing that it expects overall...

Plastic waste being made into ecologically friendly houses in western Mexico

By Mariana Gonzalez

Dr. AI comes to aid of China’s ailing healthcare

By Paula Escalada Medrano

Italian airline Alitalia cancels more than 280 flights due to strike

Rome, May 21 (efe-epa).- Italian airline Alitalia has canceled more than 280 flights on Tuesday amid a national 24-hour strike called by air sector unions.

I agree Welcome to news4europe.eu. We use cookies to improve your online experience. Find out more.