Rolling business and financial news, as Japans Nikkei surges by 4%, but European shares are hit by economic uncertainty 11.19am BST Twenty seven years ago, investors were reeling from the Black Monday crash of 1987.19th October was the day when the US Dow Jones index lost a fifth of its value in a truly stupendous wipeout.If the Oct 19 1987 stock-market crashs occurred today, its equivalent point drop in 2014 Dow would be 3703.52 points (22.61% X 16,380) 11.11am BST More reassuringly, the prices of Greek sovereign debt has strengthened, pushing down yields (the rate of interest on the debt).10-year Greek bonds are yielding 7.97% this morning, down from 8.04% on Friday night. Greece must resolutely continue to implement the agreed reforms. It is in its own interests. Being reliable creates confidence, also on the markets, Markets over-reacted and over-reaction will eventually give way to reality,If you look at recent official statement, no one is doubting that Greece has the foundation and prospects to advance. The discussion that is taking place is how we will proceed in the safest way possible. So that whole "the #eurozone crisis is back" thing lasted about 48hrs, yes? pic.twitter.com/182FzDtUSH 10.35am BST The European Central Bank has begun its new stimulus programme today, buying up covered bonds (debt backed by a cash flow from, say, mortgages or consumer loans).And Bloomberg is reporting that the ECB has wasted no time in mopping up debt from France.*ECB SAID TO BUY SHORT-DATED FRENCH COVERED BONDSAnd so it begins! RT @nr_zero ECB Said To Buy Short-Rated French Covered Bonds 10.18am BST Risk remains off the menu this morningSlight RISK OFF in European markets ... Stoxx 600 now off 0.5% -DAX -1% mkt still really searching for direction. 10.11am BST At least the mood in the markets is less negative than last week.Alastair McCaig, market analyst at IG, agrees:It might be a soft start for the FTSE down 32 points, but there is not the same undercurrent of panic seen in last weeks trading. 9.43am BST After a steady start, Europes main stock markets are on the slide again.The German DAX and French CAC are both down around 1%, and even the FTSE 100 is lurking in negative territory, down around 26 points.Everything is considerably calmer. Asian markets saw gains for equities and for the won, the rupiah, the baht and in G10, the Australian and New Zealand dollars. But as Europeans arrive at dealing desks, the mood is hardly ecstatic and FTSE, CAC and DAA are all firmly in negative territory. Risk sentiment may improved but not enough to drag the SG Risk Sentiment Indicator out of deep aversion (its at 0.13 on a 0-1 scale).Theres a lot of uncertainty in play early in the European session with traders evidently struggling as to how to call this market. 9.15am BST Just in.... Italian industrial orders have risen, ending a three-month slide, but the broader picture remains weak.Industrial orders rose by 1.5% month-on-month in August, a bigger rise than expected. However, orders are 3.2% down on a year ago, extending the 0.7% annual decline recorded in July.Italy Indust orders up 1.5% v 0.2% expected, but the y/y plunges to -3.2% ; -0.7% The sales numbers +0.4%mm but y/y at -2.3% from -1.3% 8.53am BST Industrial unrest has hit the eurozone today, with strikes hurting travellers in Germany.In another sign of tensions in Europes largest economy, German pilots union VC widened its strike at Lufthansa this morning to include long-haul flights.Lufthansa strike causes travel misery during school holidays http://t.co/tLQiFi6HYG via @euronews pic.twitter.com/YNdpjb0yhx 8.32am BST Tesco shares are the biggest riser in London this morning, up 3%, ahead of Thursdays delayed (and much anticipated) financial results.These results were postponed while the supermarket giant investigated how its profits were overstated by £250m. It is expected to tell shareholders that this is an isolated issue, only involving a small group of staff. More here. 8.26am BST Hmmm, European stock markets are making a cautious start to the week.The FTSE 100 is up 8 points at 6317, but the German and French markets have dipped.No reason for exuberance. #Eurozone #inflation expectations in free fall. Infamous EUR 5f5y inflation swap pic.twitter.com/6vB7t516j6 8.11am BST All the major Asia-Pacific markets gained ground overnight, as fears over global growth prospects receded.Various dovish comments from central bankers late last week helped to calm the mood.Sentiment has been boosted by investor belief that Central Banks will avoid tightening too soon and will remain accommodative via more quantitative easing, and by keeping interest rates low for longer. 8.03am BST #FTSE100 called +10pts at 6320 as equities continue to recover thanks to more 'Central bouncers' appeasing rowdy market party poopers 7.57am BST The Nikkei surged today despite Japans government being hit by two ministerial resignations.Japans Justice Minister Midori Matsushima quit after being accused of violating election laws. Hours earlier, trade and industry inister Yuko Obuchi resigned after opponents alleged she had misused party funds. 7.47am BST Japans stock market has posted its biggest jump of the year today, as fears over the global economy recede.The Thomson Reuters/University of Michigan index of consumer sentiment was surprisingly strong in early October, rising to more than a seven-year high. Other data also showed new housing starts rose more than expected last month, suggesting U.S. economic growth was solid. The upbeat U.S. data has brought some calm to markets after a week of turbulence as signs of softening global growth roiled investors and sent volatility spiking. 7.32am BST Good morning, and welcome to our rolling coverage of the financial markets, the world economy, business and finance.What we have seen over the past week is financial markets catching up with the data. Possibly overreacting to the data but certainly catching up.....After big gains on Friday, it doesnt seem like well have any major catalysts in todays trade.....There is also mild strength in the sterling on the back of comments by the BoEs chief economist, who suggested markets may have overreacted to some recent weak data.The absence of that global financial weather map has never been more harmful. Continue reading...
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