european stocks recover asia dives on recession fears
Last Updated : GMT 11:00:11
Arab Today, arab today
Arab Today, arab today

European stocks recover; Asia dives on recession fears

Arab Today, arab today

Arab Today, arab today European stocks recover; Asia dives on recession fears

In late morning deals, Frankfurt and Paris stocks jumped about 2.3%
Hong Kong - AFP

Stock markets in Europe attempted to recover on Wednesday, aided by steadier oil prices and banking shares, but only after Asia sank again on fears of another banking crisis and global recession.

World oil prices firmed but remain perilously close to recent 12-year lows, one day after the International Energy Agency warned the global surplus would be larger than previously thought in the first half of 2016.

In late morning deals, Frankfurt and Paris stocks jumped about 2.3 percent and London won 1.3 percent, while star performer Milan surged by 5.0 percent, but analysts warned the upwards trajectory might not last.

"Europe (is) trying to rally, with financials trying to lead the charge after their recent falls," said Russ Mould, investment director at trading firm AJ Bell.

"Whether this proves to be nothing more than a dead-cat bounce remains to be seen -- but given the possible link between oil and banking stocks, any sustained upward movement in crude would be welcome," he told AFP.

- Deutsche Bank surges -

The German market was also buoyed by Deutsche Bank, whose share price soared on speculation it may be considering a bond buyback programme to help ease concern about its funds.

Shares in Germany's biggest lender -- which had shed about 13 percent over the course of Monday and Tuesday  -- rallied 13.95 percent to 15.08 euros.

Media reports have suggested it is considering a bond buyback, but a bank spokesman declined to comment.

Deutsche Bank shares, along with those of other European lenders, have taken a severe bashing this week.

Markets remain cautious over the outlook for banking sector profitability, according to CMC Markets analyst Michael Hewson.

"Equity markets are trading cautiously ... after three days of losses brought on by concerns surrounding the profitability and resilience of the banking sector, particularly in Europe," Hewson added.

"The imposition of negative rates by the European Central Bank and other central banks has raised concerns that they could have a toxic effect on bank margins at a time of slowing growth at a time when banks are being expected to bolster their balance sheets.

"With no effective back-stop mechanism in place for European banks, this is raising concerns about the overall stability of the European banking sector as a whole."

Asian stocks took another battering Wednesday, with Tokyo suffering sharp losses.
More bourses reopened after the Lunar New Year break but immediately plunged into the red, playing catch-up with a rout that has seen billions wiped off valuations across the globe so far this year.

Russ Mould warned that investors were pricing in for another potential recession -- with economic stormclouds on the horizon -- and added that cheap debt was a "key" issue.

- 'Key problem remains debt' -

"Markets have switched from pricing in an ongoing economic upturn to worrying about a renewed global downturn and even deflation," he told AFP.

"As such, falling bank shares, concerns over China’s financial markets and a fresh plunge in the price of oil are symptoms, not causes in their own right.

"The key problem remains debt – there is too much of it. In addition, cheap debt has funded booms in Chinese construction and commodity consumption and US shale oil production, resulting in oversupply and then inevitable cutbacks and retrenchment."

The latest Asian sell-off is the latest in the past six weeks that has seen severe volatility around the world, fuelled by China's growth slowdown and a crash in crude prices.

The Chicago Board Options Exchange Volatility Index, which measures market turbulence, is sitting around five-month highs and has jumped 20 percent since Friday.

Japan's Nikkei index lost 2.3 percent to close at its lowest level since October 2014, extending Tuesday's 5.4-percent collapse.

- Key figures around 1100 GMT -

London - FTSE 100: UP 1.3 percent at 5,702.2 points

Frankfurt - DAX 30: UP 2.3 percent at 9,076.3

Paris - CAC 40: UP 2.3 percent at 4,088

Milan - FTSE MIB: UP 5.0 percent at 16,709

EURO STOXX 50: UP 2.7 percent at 2,809.7

Tokyo - Nikkei 225: DOWN 2.3 percent at 15,713.39 (close)

New York - Dow: DOWN 0.1 percent at 16,014.38 (close)

Euro/dollar: DOWN at $1.1247 from $1.1293 on Tuesday

 

arabstoday
arabstoday

GMT 02:02 2017 Thursday ,23 November

Asian markets rally after Wall St lead, euro struggles

GMT 22:40 2017 Wednesday ,22 November

Bahrain Bourse daily trading performance

GMT 11:50 2017 Tuesday ,21 November

European stocks shrug off Germany's political woes

GMT 03:59 2017 Tuesday ,21 November

Weekly inflation decreases by 0.88%

GMT 23:50 2017 Monday ,20 November

Bahrain Bourse daily trading performance

GMT 14:54 2017 Sunday ,19 November

Bahrain Bourse daily trading performance

GMT 03:16 2017 Saturday ,18 November

Asian markets head for positive end to volatile week

GMT 11:57 2017 Friday ,17 November

US stocks boosted by solid Wal-Mart, Cisco earnings
Arab Today, arab today
Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

european stocks recover asia dives on recession fears european stocks recover asia dives on recession fears

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

european stocks recover asia dives on recession fears european stocks recover asia dives on recession fears

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Air China suspends flights to North Korea

GMT 10:39 2017 Thursday ,23 November

Air China suspends flights to North Korea
Arab Today, arab today Sophian Yussef reveals suitable decoration

GMT 02:56 2017 Thursday ,23 November

Sophian Yussef reveals suitable decoration
Arab Today, arab today Syria opposition meets in Riyadh

GMT 06:23 2017 Thursday ,23 November

Syria opposition meets in Riyadh
Arab Today, arab today 'Advanced' cyber attack targets Saudi Arabia

GMT 10:18 2017 Wednesday ,22 November

'Advanced' cyber attack targets Saudi Arabia
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today Srebrenica women cry tears of joy

GMT 08:03 2017 Thursday ,23 November

Srebrenica women cry tears of joy
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today 'Robo-taxis' hold promise, and perils

GMT 08:07 2017 Thursday ,23 November

'Robo-taxis' hold promise, and perils
Arab Today, arab today Honda recalls 800,000 minivans

GMT 11:43 2017 Wednesday ,22 November

Honda recalls 800,000 minivans
Arab Today, arab today Singer Jahda Wahba has unlimited ambitions

GMT 07:56 2017 Monday ,20 November

Singer Jahda Wahba has unlimited ambitions
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 09:23 2017 Saturday ,18 November

Fedra happy for “Between Two Worlds” success

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts

GMT 10:43 2017 Wednesday ,22 November

Cigar-shaped asteroid came

GMT 09:45 2017 Tuesday ,21 November

Visit Jamaica for more than just sun

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday