Yahoo Finance FTSE 100 Live 5 August: 'Markets in meltdown' but index holds 8,000-point mark; Bitcoin sinks
US recession fears today triggered more heavy selling for global markets.
London’s FTSE 100 ended sharply lower, but stayed above 8,000 points in closing trade, off the lowest levels of the day.
Bur the wave of selling continued in New York trade, having swept across Asia and Europe.
In Japan, Nikkei 225 slumped more than 12% in the worst session since 1987.
And the risk-averse mood left cryptocurrency Bitcoin down almost 10%.
FTSE 100 Live Monday
US recession fears hit markets
Nikkei 225 and Bitcoin slide
Nasdaq pares back some of the day's losses
17:20 , Simon Hunt
As the trading session moves into the afternoon over on Wall Street, steep declines seen earlier in the day have been partially reversed.
The Nasdaq had fallen as much as 6% in the opening minutes of trade but is now down around 2.5% on yesterday’s close. The S&P 500 had sunk as much as 4% but is now down just over 2%.
That has been helped in part by a reversal in fortunes for the big-name listed chipmakers. Nvidia shares, which had dropped 14% earlier in the day, are now down 5%, while the UK’s Arm is down 2.6%, compared with 13% earlier in the day.
Bitcoin has also seen a small rally in the past couple of hours’ but remains down around 5% on the day.
FTSE 100 holds the 8,000-point mark in closing trade but global stock rout continues
16:54 , Michael Hunter
London’s FTSE 100 was off its lowest levels of another turbulent trading session as Monday’s business drew to a close, but the stock market meltdown continued in financial capitals across the world.
The main UK index was down almost 170 points for the session at 8007.14, a slump of over 2%. It had been as low as 7913.97.
All but one FTSE 100 constituent fell. And the exception – Haleon, the consumer healthcare giant – rose just 0.2%. It was a day when the bulk of the leadeboard was defined by firms with only small losses, among them Cybersecurity firm Darktrace, down 0.2% and discount retailer B&M, down just 0.5%.
The size of the biggest falls were much more eye-catching. With the wider sell-off stoked by fears of a potential recession in the US, sparked by weak looking jobs data on Friday, Melrose Industries, the aerospace tech firm, looked exposed. It was down by almost 7% in the biggest single drop.
Coca-Cola HBC, the major bottler of the world famous soft drink, looked in need of refreshment, down over 5%.
There was no respite for defensive stocks, those with stable revenues during downturns. Water utility Severn Trent was down over 5% and Centrica, British Gas’ parent, cooled by just under 5%.
Nor was there respite for the mid-cap FTSE 250, the second-tier index seen as more sheltered from global currents. It fell almost 600 points in closing trade to 20,251.97.
Big-name Nasdaq stocks lead 600 point sell-off on US's famed tech-heavy index
16:38 , Michael Hunter
Some of the biggest and best-known names in tech are spending a second session leading the rout on the Nasdaq Composite, the Wall Street index most associated with the sector.
Chip maker Nvidia is down almost 7% and at the top of the list of most actively traded stocks, along with rival and peer Intel, down just over 7%.
Apple is over 5% softer after the recent revelation that Berkshire Hathaway has sold much of its stake in the iPhone maker, which it has had for eight years, although it will remain a major investor.
Tesla, the electric vehicle maker, was down over 5%.
Overall, the index itself lost over 600 points to trade at 16,096.01
Oil price falls to its some of its lowest levels of 2024, but supply concerns provide support
15:30
Concern about the outlook for economic growth is keeping oil prices under pressure, although the main international contract bounced off its weakest point of the day on concern about supply levels.
Brent Crude is down by around 0.8% for the day at $76.25 a barrel. It had been as low as $75.06, before bouncing up off what were its weakest levels since January on reports that Libya’s biggest oilfield stopped production.
Political tension in the Middle East added to sense of unease around the market, not least on concern over potentially escalating tension between Israel and Hezbollah in Lebanon.
Bonds in demand as investors drop stocks, pushing down yields on government debt
15:03 , Michael Hunter
Sovereign bond markets are benefitting from investors moving money out of stock markets and stashing it in safer-looking alternatives.
The declines in the stock market are broad – defensive sectors that can often do well during times of heavy selling are also taking a hit today – and even the price of one of the most traditional of all havens, gold, is falling.
But demand for government debt is pushing yields on it lower, as prices for the bonds rise.
The UK’s benchmark 10-year debt is now yielding 3.811%, down from 3.838% at today’s open. The equivalent US debt was yielding 3.779%, having closed at 3.793% on Friday.
David Morrison, senior market analyst at Trade Nation, said:
“Yields have slumped over the last few trading sessions as investors price in the prospect of sharply lower interest rates, as recent data weakness has boosted recession fears.
“There’s also the ‘flight-to-quality’ aspect, where funds coming out of equities are parked in bills, notes and bonds until investors get some clarity over how much more stock market downside there may be”.
Markets meltdown: Nasdaq loses 800 points as investors log out of tech sector
14:46 , Michael Hunter
There is no sign of an end to the brisk sell off across US stock markets as the trading day gets underway in New York.
The S&P 500, Wall Street’s main shares benchmark, is down by around 200 points at 5,125.30.
A narrower benchmark, the Dow Jones Industrial Average, made an eye-catching fall of over 1,100 points to hit 38,525.24.
The tech-heavy Nasdaq Composite lost almost 800 points to 16,028.34
Investors are dumping stocks on worries that the US economy is slowing noticeably before the Federal Reserve has started cutting interest rates.
If there is a recession brewing, it could bite more deeply if the world’s biggest economy starts to contract when the cost of borrowing is relatively high.
A highly influential readout into the US jobs market, out on Friday, revealed an unexpected rise in the overall jobless rate. There was also disappointment over job creation in July.
Asian markets took a heavy knock today, as investors mulled the implications of an interest rate rise in Japan.
The uncertain outlook for global monetary policy and economic growth is rippling through markets, as bargain hunters continue to stay on the sidelines during the selling.
FTSE 100 down 220 points as US open looms with S&P 500 set for 200-point drop
14:28 , Michael Hunter
The global sell off sweeping stock markets is on course to last into the start of US trade.
Minutes out from the opening bell on Wall Street, the S&P 500 is predicted to fall by around 200 points to 5181.50 when full trading starts.
London’s FTSE 100 is down by over 230 points to 7944.16.
The FTSE Eurofirst 100, which tracks Europe-wide stocks, is down over 130 points.
Declines were sparked on Friday by a surprise rise in the US jobless rate, stoking fears of a recession.
That added to concern that stocks looked overvalued after returning to record highs.
The tech sector has looked especially exposed.
New York’s Nasdaq Composite is also on course for an opening slide according to futures trade.
With the open looming, there is no sign yet of investors hunting bargains.
Magnificent Seven to shed a trillion dollars; FTSE continues fall as US tech stocks slide in pre-market
13:56
An hour out from markets opening on Wall Street, the FTSE 100 has slipped further and is now down more than 3%.
Nasdaq futures fell over 4% while S&P 500 futures fell around 3% ahead of the U.S. open.
The so-called ‘Magnificent Seven’ US tech stocks are among the hardest hit, and are set to shed a combined $1 trillion after markets open.
High-performing shares of Alphabet, Amazon, Meta, Microsoft and Tesla have sunk as much as 12.2% in premarket trading.
AJ Bell investment director Russ Mould said: “The fight is on. Bulls will note without undue concern that the aggregate stock market valuation of the Magnificent Seven is only back to where it was in June and the NASDAQ is at levels seen as recently as late May.
“Bears will say that someone, somewhere has lost $2.3 trillion on the Mag7 since May, while the NASDAQ is just 5% above where it was in November 2021, before the AI hype machine moved into top gear.
“Either way, a lot of froth has been blown off the top and some will see this as a healthy (if apparently unexpected) correction, others as the start of something altogether nastier.”
Lunchtime update: FTSE slips further
12:47 , Simon Hunt
The FTSE 100’s slide has shown no signs of slowing down with the index having fallen further later into the session.
At lunchtime it is now down 2.6% or 214 points, to 7,960.
All but three stocks (Reckitt, Darktrace and Haleon) are in the red, with shares of Pershing Square down as much as 7% owing to the investment firm’s heavy exposure to US equities.
Sinking stocks present opportunities: Hargreaves Lansdown
11:57 , Simon Hunt
Derren Nathan, head of equity research at Hargreaves Lansdown, said: “US futures suggest markets may fall further before finding a support level. The coming months will be a testing time with economic and political uncertainty weighing on the market, as the US heads towards an increasingly unpredictable election.
“Trying to catch a falling knife can end in tears, but its important not to abandon a long-term lens. Time in the market and diversification have been consistently shown to be the bedrock of successful investing strategies.
“Current conditions will present opportunities to buy shares in quality companies. To mitigate the volatility, it makes sense to feed excess capital into the market slowly, but established companies with dominant market positions have survived and prospered through many cycles. And emerging mega-trends such as artificial intelligence and the potentially enormous healthcare impact of weight-loss drugs haven’t gone away.”
Investors weighing up timing to 'buy the dip' or to brace for US recession – Scope markets
10:45 , Michael Hunter
Futures trade is pointing to further losses in New York, after a global wave of selling followed weak-looking jobs data out on Friday.
More than 100 points are expected to be wiped off the S&P 500 in New York today.
That would leave the broad index, and wider US markets, heading away from the record highs that they re-tested earlier this summer.
Joshua Mahony at Scope Markets, pointed to the importance of timing in reading the signals within the noise And that comes into a Lon-anticipated US interest rate cut, which could define when confidence comes back:
“Traders are left weighing up whether to worry about a potential impending recession or simply buy-the-dip in anticipation of a sharp and swift pivot from the Federal Reserve”, he said.
“With the Sentix investor confidence gauge collapsing to a seven-month low, we are clearly in a highly sensitive time for markets despite the monetary pivot that had long been heralded as the answer to all our problems.”
Global sell-off due to fears US economy will miss 'soft landing' - AJ Bell
10:05 , Michael Hunter
With no end in sight yet to the deep and wide sell-off across global markets, the unease is tracking fears that the US economy is in for a rough time, according to City broker AJ Bell.
The firm’s head of financial analysis, Danni Hewson, said investors were looking at “the prospect that the much-touted US soft landing looks like being a whole lot bumpier than markets had hoped,” adding:
“Circuit breakers have been firing on Asian markets as stocks tumbled, with investors scurrying to price the impact a stalling US economy is likely to have.
“Friday’s [US] jobs figures dropped like a bucket of cold water on markets already chilled by mixed earnings updates and concern about levels of spending by big tech companies on AI plans.
“London markets haven’t escaped the Monday meltdown.”
Every FTSE 100 stock falls and utilities among the biggest decliners
09:57 , Michael Hunter
Every single member of the FTSE 100 fell in morning trade, as the global stocks sell off swept round the city.
And utility companies – which often stand out as a haven in times of turmoil, due to their steady revenue streams – were caught up in the selling.
Here is a look at the worst - and least worst – perfomers.
FTSE 250 down 2.5%, Trustpilot and Aston Martin among big fallers
09:52 , Graeme Evans
The FTSE 250 index is down by 2.5% or 521.52 points to 20,304.83, with only two stocks - Wizz Air and Jlen Environmental Assets - in positive territory.
As well as Wood’s 38% decline following the withdrawal of bidder Sidara, there was a 10% results-day reverse for shipping broker Clarkson.
Among the FTSE 250-listed investment trusts, JPMorgan Japanese fell 7%, Allianz Technology Trust by 5% and Baillie Gifford Japan by 4.5%.
Trustpilot shares also lost some of their recent strength by declining 6% or 11.2p to 186,2p and Aston Martin Lagonda slipped 7.3p to 138.6p.
FTSE 100 down 2%, Glencore and Anglo American under pressure
09:41 , Graeme Evans
The FTSE 100 index is 2% or 159.95 points lower at 8014.76, leaving the top flight back where it was in April.
Big fallers included Nvidia-backer Scottish Mortgage Investment Trust, which dropped 4% or 36p to 777.2p.
The recent retreat for GKN Aerospace owner Melrose Industries continued as it reversed another 5% or 23.3p to 459.3p. It had been at 585p before last week’s results.
In the commodities sector, Glencore shares fell 4.5% or 18.2p to 386.85 ahead of Wednesday’s interim results, and Anglo American lost 83.5p to 2160p.
Other stocks under pressure included Vodafone as shares weakened 2.9p to 69.3p and Severn Trent after a decline of 5% or 138p to 2515p.
Wood bidder ends interest amid market uncertainty, shares slide 37%
09:18 , Graeme Evans
Financial markets uncertainty was today cited as one of the reasons for the collapse of a potential £1.6 billion takeover in the FTSE 250 index.
Energy and materials-focused consulting and projects firm Wood Group had been in the sights of the Dubai-based engineering company Sidara.
The suitor said today: “Sidara confirms that in light of rising geopolitical risks and financial market uncertainty at this time, Sidara does not intend to make a firm offer for Wood.”
Sidara’s decision to walk away after a long running pursuit left Wood shares 37% or 73.6p lower at 123.4p. The proposal had valued Wood at 230p a share.
'Global waves of unease' mean 'torrid' opening for London stocks
08:43 , Michael Hunter
As the global stock market sell off sweeps through London in opening trade, reaction is coming in from City experts.
Richard Hunter, head of markets at Interactive Investor, called the moves in to defensive stocks, which had offset some of the overall drop “half-hearted” in a “torrid opening” which followed “global waves of unease”.
He added his voice to the consensus that the selling tracked fears of a potential US recession. Data out on Friday revealed slowing jobs market over the Atlantic, in particular after an unexpected rise in the unemployment rate to 4.3%,
“The reading followed weak jobless claims and manufacturing data from the previous day which had taken investors by surprise,” he said
“The main concern now is whether the Federal Reserve’s reluctance to reduce interest rates thus far is now translating into a policy error which will see the economy glide into recession.”
Nonetheless, Hunter pointed out the selling comes after stock markets were retesting record highs.
“Notwithstanding any further shocks, to have let some air out of the tyres after a recent breathless run is usually seen as a healthy corrective measure.
“There are few reasons at this precise moment to signal an end to the bull market, even if investor sentiment is understandably cautious.”
Market moves have been extreme: Lombard Odier
08:42 , Simon Hunt
Samy Chaar, Chief economist at Lombard Odier, said: "There are two things impacting pricing, one is the recession risk and that's the main worry but on top of that there is a bit of anxiety around geopolitics and the expected retaliation from Iran and Hezbollah after the Israeli strikes.
"On the first, it does feel that American economic conditions are still acceptable, we're not seeing a pick up in lay offs, in job cuts. OK the data Friday was poor, but we need to be open to the possibility next month we get job growth number around 150,000 170,000.
"It's a game of ping pong. Positioning goes a bit far on one side and then reverses, and market moves have been extreme because positioning has been extreme. We're going a bit far to the extremes, 3.70% seems a bit far on the U.S. 10 year yield. It was a good buy at 4.50% it is a good sell at 3.70%."
Markets in meltdown: Capital.com
08:28 , Simon Hunt
Kyle Rodda, senior financial market analyst at Capital.com, said:"The markets are in meltdown and it's a sea of red across the world. The rapid move in the yen is putting downward pressure on Japanese equities, but it's also driving an unwind of a major carry trade - investors had leveraged up by borrowing in yen to buy other assets, chiefly U.S. tech stocks.
“We are basically seeing a mass deleveraging as investors sell assets to fund their losses. The rapidity of the move has caught a lot of investors off guard; there's a lot of panic selling now, which is what causes these non-linear reactions in asset prices to pretty straightforward fundamental dynamics."
Bitcoin's descent gathers pace
08:16 , Simon Hunt
Bitcoin’s recent decline has gathered pace this morning, with the cryptocurrency down more than 10% to $51,852 amid wider market turbulence.
That means Bitcoin has now fallen as much as a fifth in the past month.
Ethereum has sunk even further -- it is down 15% in the past 24 hours to $2,292 and has lost around a third of its value over the past month.
FTSE 100 down 2% amid global market rout
08:07 , Graeme Evans
The FTSE 100 index is 2.1% or 174.87 points lower at 7999.84 during a bleak start to the week for global markets.
The selling follows Friday’s poor jobs figures in the US, which appeared to dash hopes of a soft landing for the world’s largest economy.
Japan’s Nikkei 225 slumped by more than 12%, with a stronger yen contributing to the worst session in Tokyo since 1987.
The risk-averse mood also caused a fall of 11% for Bitcoin.
Wall Street under pressure after US jobs setback
07:48 , Graeme Evans
US futures are pointing to another slide for Wall Street stocks later today.
Recession fears were fuelled on Friday after payroll growth of 114,000 came in short of the 175,000 forecast while June’s figure was revised lower.
The unemployment rate hit a three-year peak of 4.3%, above the 4.1% expected although the figure may have been distorted by hurricane disruption.
The figures prompted a surge in bets on Federal Reserve interest rate cuts, with markets now seeing a 200 basis points reduction over the next 12 months.
Poorly-received results impacted the tech sector, leaving Amazon shares down 9% and Intel off 26%. The Nasdaq closed 2.4% lower and has lost more than 10% since mid July.
London ship broker Clarkson reports slip in first-half profits at a time of geopolitical uncertainty
07:39 , Michael Hunter
London ship broker Clarkson revealed the impact of geopolitical tensions on its business today, as it stood by its outlook for the full year after revealing a drop in half-year profits,
The St Katharine’s dock firm said “disruption at both the Suez and Panama Canals supported elevated rates ... in the petrochemical gas sector”.
It also said that “with disruption at the Panama Canal starting to ease and the US-Asia arbitrage narrowing, markets may now be starting to normalise” in this part of the business,
An “an ageing fleet’ meant it expected the petrochemical freight market to find “some underlying support”.
Carrier Rates for liquified natural gas (LNG) “softened” in the first half, with some key prices “down 35% year-on-year”.
It added:
“LNG carrier transits were down 84% and 93% year on year respectively in the first half, which led to longer voyages and boosted vessel demand.”
Clarkson said that the tanker market “remained strong”, with its “average tanker earnings index averaging US$44,431 per day”.
Overall, profit before tax for the period fell to £51.5 million, down from £53.1 million from revenue of £310.1 million, down from £321.1 million.
Heavy selling hits markets as Nikkei and Bitcoin slide
07:27 , Graeme Evans
This morning’s 12.5% slide for the Nikkei 225 is its biggest one-day drop since 1987, wiping out the benchmark’s gains for the year.
Fears of a US recession also mean volatility as measured by the Vix is at a two-year high, while on cryptocurrency markets Bitcoin is down 12% to 50,970.
The FTSE 100 index is expected to open about 1.5% lower and a fresh wave of selling is expected on Wall Street later.
IG’s chief market analyst Chris Beauchamp said: "This is a perfect demonstration of what happens when everyone tries to sell at once.
“Such moves don't stop in a single day and we likely have a summer of volatility ahead of us, particularly as we await developments in the Middle East."
Japan stocks slide, FTSE 100 seen lower and pound under pressure
07:06 , Graeme Evans
Japan’s Nikkei 225 has slumped 12% and the FTSE 100 index is forecast to open more than 1% lower as global stock market turbulence continues.
The Nikkei reverse to a nine-month low was fuelled by a sharply higher yen, impacting the profit outlook for the country’s multinational companies.
Futures trading points to another weak session in Europe after the FTSE 100 index closed 1.3% lower and the Dax in Frankfurt lost more than 2% on Friday.
The latest selling follows more weakness for US tech giants before the weekend as the Nasdaq closed 2.4% lower and the S&P 500 index lost 1.8%.
The pound starts this week down by 0.6% to $1.272, with Brent Crude also 1.5% lower at $75.82 a barrel.
Market jitters sparked by US recession fears
06:54 , Simon Hunt
Good morning from the Standard City desk.
Markets were rocked on Friday after US job numbers sparked fresh concerns over a looming recession, wiping hundreds of billions from the New York stock market.
The Nasdaq dropped as much as 2.4% on the day, while the S&P 500 index slipped 1.8%.
The Labor Department's report showed nonfarm payrolls rose by 114,000 jobs in July, where economists polled by Reuters forecast an increase of 175,000 -- while the unemployment rate increased to 4.3%.
Tech stocks were especially hard-hit. Intel and Amazon each saw one of their biggest-ever single-day drops, falling and 26% and 8.8% respectively.
Janet Mui, head of market analysis at wealth manager RBC Brewin Dolphin, said the US jobs report “disappointed on most fronts, re-igniting concerns of a potential recession and supporting the Federal Reserve to start cutting rates in September.
“US hiring has weakened meaningfully, dragged by the usually strong services sector. Meanwhile, wage growth continued to slow, as the labour market is clearly on a loosening path.
“Taken together with the higher jobless claims, contraction in the manufacturing hiring survey and July’s jobs report, it is likely that the Fed will start cutting interest rates next month and there is expectation that it may need to cut more aggressively than previously pencilled in. Risk assets are reacting negatively given the growth concerns while bonds/gold/defensive sectors are rallying as investors seek safe havens.”
