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* Global equities skid over concerns about the Chinese economy
* Sino-US trade talks, FOMC meeting under discussion
Sterling recedes ahead of Brexit vote on Tuesday
(Update prices overall, add German bond prices)
By Tom Wilson
LONDON, Jan 28 (Reuters) – Global stocks slid into the red
Monday, while stock markets from Europe to Asia were shaken by
the nerves of the Chinese economy and cautious investors
from a week rich in major events.
The main European stock markets fell in morning trading, reflecting a
retreat for Asian peers while gloomy data on the Chinese industry
the profits exceeded any revival of the temporary end of the US market.
closure of the government late last week.
At the beginning of a busy week, investors focused on
Sino-US trade negotiations and the Federal Reserve's policy meeting.
The UK's exit from the UK has also taken an imminent turn.
European Union, with crucial votes for Tuesday to the British
the parliament designed to break out of the Brexit impbade.
Around 11:50 GMT, the MSCI World Equity Index,
which tracks stocks in 47 countries, decreased by 0.1%.
The main European MSCI index fell by 0.5%, with
the Euro STOXX 600 losing the same thing. Major
French, German and British indices all fell. In Asia, the Shanghai, Hong Kong, Tokyo and Seoul stock exchanges have
earlier, all had closed, although the broader MSCI index of
Asia Pacific shares outside Japan were stable.
Investors said stocks were down after a second in a row
monthly decline in profits of Chinese industrial enterprises.
Data suggests future problems for Chinese manufacturers
already struggling with falling orders, layoffs and factories
closures amid a prolonged trade war with the United States. "A slowdown in the Chinese economy could sometimes be taken
as an idiosyncratic event that would be treated by Beijing ",
said Philip Shaw, chief economist at Investec.
"It's pretty clear that the current situation is more
overall, in terms of tariff tension between the United States and
China and the threat of this conflict are spreading more widely. "
Investors now wait for Chinese Vice Premier Liu He's
visit to Washington on Jan. 30 and 31 for the next round of trade talks
negotiations with the United States.
As the parties are still far from solving trade problems, the
dollar remained firm as traders sought refuge pending
news of the US-China talks on Tuesday and Wednesday.
The dollar index – an indicator of its value compared to six major
peers – was flat at 95,793.
"In this environment, the dollar is holding up well," said
Thu Lan Nguyen, Forex strategist at Commerzbank. "I suppose
that this will continue to be the case even if the conflict
intensifies at the end of the week, "she said, referring to the
talks.
The dollar will also have a strong influence from the Fed this week
meeting, where the central bank should signal a break in
its tightening cycle and recognize the increasing risks to the
largest economy in the world.
Although the Fed has planned two more interest rate hikes for
2019, darkening of global economic outlook and high volatility
stock markets have darkened politics.
VOTES OF BREXIT
Elsewhere in the foreign exchange markets, the pound fell back
crucial votes in the British parliament aimed at breaking the
Stalemate on the Brexit.
The British currency lost 0.3% to 1.3164 USD,
as investors consolidate positions ahead of Tuesday's Brexit
votes.
Earlier this month, lawmakers rejected Prime Minister Theresa
The agreement may leave the EU, which included nearly two years
transition period to help minimize economic disruption. This
defeat set up a series of votes in parliament, whereby
Legislators and the government will try to find a way to go forward. Elsewhere, the yield on 10-year German government bonds was
slightly down to 0.194% after falling last week
The President of the European Central Bank, Mario Draghi, warned that the risks
the euro area economy has eased.
Draghi must speak later Monday in the European Parliament
Parliament in Brussels. Investors said they would look for
more details on potential changes in monetary policy.
Brent futures fell 1.8% to $ 60.56
a barrel.
The fall came as a result of the move by US companies to add reported platforms
that gross production can still increase and that worries grow
signs of economic slowdown in China, second country of the world
oil user. Gold was slightly down. Spot gold was down 0.2
percent at $ 1,300.56 an ounce, hovering just below more than
The highest of 7 months at $ 1,304.40 reached earlier in the session.
Warning: The opinions expressed in this article are those of the author and may not reflect those of the author. Kitco Metals Inc. The author has endeavored to ensure the accuracy of the information provided. However, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes. This is not a solicitation to exchange merchandise, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept liability for losses and / or damage resulting from the use of this publication.
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