Asia
After the heavy losses on Wall Street on Wednesday, a fall on Asia-Pacific exchanges was highly likely. But price falls were relatively modest in comparison, with China’s Shanghai Composite Index down by just over 0.5% to 2,649 points. Hong Kong’s Hang Seng was a bigger faller in percentage terms, shedding 1.6% to 26,819 points. Japan’s Nikkei is now below 22,000 points after a brief flirtation with levels above this; the index is down around 7% this year so far.
Europe
The UK is in the grip of yet more political turmoil. With the vote on the Brexit deal due next week, the Government was judged to have been in contempt of Parliament by not releasing the full text of its legal advice. The pound fell to $1.27 yesterday, but has since staged a minor recovery. A very weak reading of the UK services PMI, which showed the sector only just expanding, also harmed the case for sterling against its rivals – although today’s moves are modest.
Chancellor Philip Hammond is due to give evidence at the Treasury select committee this afternoon, following on the Bank of England’s testimony yesterday.
Shares in under-fire German titan Deutsche Bank (DBK) fell to a record low below €8 today.
Key European exchanges were down by less than 1% today amid global weakness.
North America
US markets are closed as mark of respect for George HW Bush, whose funeral is today. The last time stock exchanges closed for the death of a President was in 2007 after Gerald Ford died. Bond markets are expected to see only very limited trading, while interest rate futures and options trading will cease.
Traders are probably relieved for a short break after Tuesday’s meltdown. The Dow’s points fall was the fourth biggest in its history as nearly 800 points was wiped off the index.
Canadian stock exchanges are open as usual and the central bank is expected to hold interest rates at 1.75%. Non-farm payrolls are due on Friday.
