ASX set for sharp falls as China, Turkey worries hit global sharemarkets

16 August, 2018, 23:30 | Author: Regina Silva
  • People holding U.S. dollars stand in front of a currency exchange office after Erdogan’s call to sell dollar savings to support the lira in Ankara Turkey Aug.14 2018

Asian shares fell Wednesday as concerns about Turkey's financial crisis weighed on investor sentiment but the crisis-hit lira took a breather following the turmoil of the past week.

"That China and the USA are beginning to talk again is supporting the market", said Commerzbank currencies strategist Thu Lan Nguyen.

MSCI's broadest index of Asia-Pacific shares outside Japan slid more than 1 per cent to its lowest since August 2017, after bouncing 0.4 per cent the previous day when the Turkish lira showed signs of stabilising.

The Dow Jones Industrial Average .DJI fell 137.51 points, or 0.54 percent, to 25,162.41, the S&P 500 .SPX lost 21.59 points, or 0.76 percent, to 2,818.37 and the Nasdaq Composite .IXIC dropped 96.78 points, or 1.23 percent, to 7,774.12.

The Russian ruble, which lost two per cent on Monday, jumped 1.7 per cent, while the South African rand was 2.2 per cent higher, having lost seven per cent a day earlier.

The financial plan will be closely scrutinised by European authorities and market players, following pledges to increase benefit spending and accelerate tax cuts, despite the possibility of this costing as much as €120 billion (£107 billion) in the first full year.

"We will boycott America's electronic products", Erdogan said mentioning that Turkey would produce the better of every product bought with foreign currencies and export them. "In times when the dollar has been turned into a tool for political punishment, we will continue to strongly take steps to protect the lira in global trade". "I'm quite surprised because I took a lot of cash from the bank in lira and when I woke up in the morning I found out that I nearly lost [the equivalent of] one hundred or two hundred during one night", Kobe Wu Kejia, a Chinese tourist, said.

Turkey's president appeared to escalate a dispute with the United States that has helped foment a Turkish currency crisis, claiming Tuesday that his country will boycott US -made electronic goods.

Ghazni attack: 70 policemen killed in Afghanistan's provincial capital
The Taliban are going from house to house to find government officials or their relatives to kill", said one resident, Sayed Zia. But in others "the Taliban have positioned their fighters in high buildings shooting at security forces from there", he added.


US Newspapers Hit Back At Donald Trump Over 'Fake News' Claims
US President Donald Trump has tweeted that the " fake news media" is the "opposition party", while calling it "very bad" for the US.


'Who?': Eli Manning quietly fires back at Jaguars star
Nor does Titans' Marcus Mariota - a "great quarterback", he said - or Browns' Tyrod Taylor, who "does not make mistakes". Jacksonville Jaguars cornerback Jalen Ramsey's interview with GQ has upset plenty of folks out there.


Package holiday giant Thomas Cook said this month, before the lira crisis struck in earnest, that it has seen a 63 percent increase in bookings for Turkey from a year ago, with Antalya now its most popular airport for British holidaymakers. Ankara retaliated on Wednesday by doubling tariffs on some USA imports including cars, alcohol and tobacco.

The euro rose 0.3 percent to $1.1373, away from Wednesday's lows of $1.1301. The euro also struggled near a 13-month low versus the Swiss franc, a traditional safe-haven currency.

The single currency drifted down toward $1.13 for the first time since July 2017 and sterling dipped below $1.27 for the first time since June a year ago.

Government bond yields, meanwhile, nudged higher amid the ebb in risk aversion.

The Australian dollar, seen as a proxy for China-related trades, climbed 0.3 percent to $0.7262 after falling to $0.7202 on Wednesday, its weakest since January 2017.

Oil plunged after data showed USA crude stocks rose by 6.8 million barrels to 414.2 million barrels, confounding analysts surveyed by Bloomberg who had expected a drop of 2.5 million barrels.

The single currency stood little changed at $1.1347, not far from a 13-month trough of $1.1330 brushed overnight.

Recommended:



Popular

Billionaire Musk proposes tunnel to Dodger Stadium
The company is now working on an Environmental Impact Report (EIR), as required by the City of Los Angeles. The Boring Co. said construction would not affect Metro stations or lead to any road closures.

Qatar Rescues Turkey With $15 Billion
Administration officials said the USA does not now have any meetings scheduled with Turkish officials to discuss Brunson's case. A spokesman for the Turkish president has said Washington must stop trying to influence Turkey's judiciary.

China printing currencies for countries like Nepal, Lanka and Bdesh
In the last 24 hours, rumor mills were abuzz with reports that Indian currencies has been printed in China . Many countries such as Denmark prefer to outsource the printing of their currency due to the cost involved.

Trump revokes security clearance for ex-CIA chief John Brennan
During Wednesday's White House briefing, Press Secretary Sarah Sanders confirmed Brennan's access was now void. Rand Paul , R-Kentucky, in a tweet.

Militants attack security training center in Kabul city
So far more than 150 people have been killed in the fighting, according to a local member of parliament. Taliban spokesman Zabihullah Mujahid claimed responsibility for the assault.

Russia's Lavrov says conditions exist for Syria refugee return
He said the Assad government has a right to defend itself against opposition attacks and Moscow will support those operations. Ankara was also ready for such a move in trade with the European Union, he added.

Fortnite New LTM: Soaring 50's, Plus Sniper Shootout Changes
Limited Time Mode: Soaring 50s: This mode is a twist on the traditional 50 vs 50 mode , featuring an extra emphasis on mobility. The only weapons players will happen upon here are sniper rifles, and the spawn rate of floor loot has been reduced by 50%.

New Study Suggests Vaping Is More Dangerous Than First Thought
But scientists and health officials across the world are now divided over the safety of e-cigarettes. Previous studies have focused on the chemical composition of e-cigarette liquid before it is vaped.

Manafort trial turns from prosecution's case to his defense
The case against Manafort has long centered on whether he lied when he claimed not to control any foreign bank accounts. Gates said he helped Manafort commit crimes in an effort to lower his tax bill and fund his lavish lifestyle.

Australia archbishop gets house detention for abuse coverup
However, he also found that the former archbishop had shown no "remorse or contrition" for covering up Fletcher's crimes. Fletcher was found guilty in December 2004 on nine counts of child sexual abuse and died two years later in jail.