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Hello and welcome to our coverage of the global economy, financial markets, the euro zone and businesses.
This is a worrying time in the financial markets as emerging economies around the world are under pressure.
Emerging market equities have been falling steadily for several days, weighed down by fears over global growth prospects, the strength of the US dollar and the various trade disputes the White House has caused this year.
The markets were a sea of red yesterday, with notable losses in China, Saudi Arabia and Indonesia, as traders rushed for safer assets.
There are new losses in Asia today, dragging the region's stocks to their lowest level in a year (more about that shortly).
Holger Zschaepitz
(@Schuldensuehner)Asian stocks are heading towards 1 year on the anxiety related to trade and emerging markets despite the decline of the dollar. The sentiment remains very cautious before the potential escalation of the trade war. The Rupiah of Indonesia advance but Philipinne Peso sinks with stocks. 10 years and over, at 2.9%, Bitcoin falls off a cliff. pic.twitter.com/3Tzki1q0YM
The dollar is currently at its highest level for more than a year against a basket of emerging market currencies, some of which hit record lows.
This makes it more difficult to service the external debt and push up inflation. This forces policymakers to consider high interest rate increases that will dampen growth.
Argentina has signed an IMF rescue plan, Turkey is fighting against a currency crisis, and Brazil has been the victim of a corruption scandal, which is worrying the city at the moment.
Another concern: Donald Trump could deepen the trade war with China by signing tariffs on an additional $ 200 billion in imports. An announcement could come today.
Such escalation could further damage the Chinese economy, with adverse effects on other companies in the global supply chain. This is another reason why emerging markets are feeling the pressure today.
As Christophe Barraud, economist at the Paris brokerage firm MArket Securities, Put the:
"People are watching what is happening in emerging markets, the trade war and the fact that the US is likely to apply another wave of tariffs to China.
If you look at global growth, more and more signs indicate that it will slow down in the coming months.
European markets are expected to plummet this morning, after the FTSE 100 hit its lowest level in four months.
IGSquawk
(@IGSquawk)European opening calls:#FTSE 7374 -0.12%#DAX 12027 -0.12%#CAC 5254 -0.13%#MIB 20623 + 0.20%#IBEX 9284 -0.19%
This follows last week's losses on Wall Street, led by the tech industry, after Sheryl Sandberg of Facebook and Jack Dorsey of Twitter were grilled in Congress.
The session sparked speculation that social media might be faced with stricter regulation to crack down on misinformation, harassment and the interference of rogue states.
As Mike van Dulken of Accendo Markets Explain:
The calls for a negative opening are the result of negative Wall Street deals, with the Tech sector significantly lower after the Twitter and Facebook testimonials in the US Congress.
The turmoil in emerging markets is also continuing, expanding from Argentina and Turkey, further dampening global sentiment pending the US decision to adopt additional import duties in China.
L & # 39; s calendar:
- 7:00 BST: German factory orders for July
- 1:30 pm BST: Weekly figures on unemployment in the United States
- 15:00 BST: US service sector PMI for August
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