European markets slid toward their lowest level since December 2016 with Asian equities verging on a bear market.
Investors are nervous after global equities tried and failed to recover this month’s losses. U.S figures are due this week for earnings from tech companies including Amazon, Alphabet, Microsoft and Intel which could be key to how much further the drop will go.
Some of the biggest falls today were in Japan, Hong Kong and China, where shares had their biggest rise in more than two years yesterday and fell back today. In addition to trade war concerns, the death of Saudi journalist Jamal Khashoggi and tension with Saudi Arabia, Italy’s 'borrow more' budget and UK Brexit fears are among factors weighing on sentiment. Globally, financial markets continue to struggle to rally as various economic and political concerns weigh on investor confidence.
In the 'bond market', UK government Treasury yields dropped to 3.15% with interest rate rises feared on top of a global bond/debt sell-off. Italian bonds fell as the European Union looks set to reject the country’s budget.
Safe Haven Shelter
Gold headed for its highest close in three months.