Markets roil, futures slump after Dow’s record, one-day gain

FRANKFURT — More wild market swings appeared imminent Thursday, with U.S. stocks heading sharply lower after the largest single-day point gain in history for the Dow.

Slowing economic growth globally and a partial U.S. government shutdown heading into its sixth day whipsawed markets from Europe to Asia. Dow futures pointed to a 400-point loss less than two hours before the opening bell, following a 1,000-point gain the previous day.

Trading resumed in European markets which had been closed for the Christmas holiday, and the German DAX slid 1.7 per cent to 10,447.53. France’s CAC 40 gave up 0.1 per cent, to 4,619.74. Britain’s FTSE 100 fell a full percentage point to 6,616.55.

Futures for the broad S&P futures slumped 1.5 per cent to 2,430.50 and the battered Nasdaq, down more than 18 per cent in the past three months, slid 1.6 per cent, to 6,188.50.

On Wednesday, U.S. markets snapped a four-day losing streak and clocked their best day in more than 10 years as the Dow jumped 5 per cent, or 1,086 points, to 22,878.45. Advisers to President Donald Trump said there were no plans to oust Fed chairman Jerome Powell, though his sentiment on the man he nominated, played out it tweets, seem as volatile as the stock markets. Strong holiday sales, up more than 5 per cent during the holiday season in the U.S., also lifted spirits in the shortened trading week. Mastercard SpendingPulse said U.S. shoppers spent more than $850 billion this year.

“The question, of course, is whether this is just a snapback bear market rally, or as Trump said, a tremendous opportunity to buy stocks?” Chris Weston of Pepperstone Group Limited said. “We can assess the fundamental drivers, such as poor global economics, the Fed not altering its forward guidance or providing flexibility to the pace of balance sheet normalization, and ascertain nothing has really changed here,” he added.

Bloomberg reported that the U.S. will send a government delegation to hold trade talks with Chinese officials in Beijing in the week starting Jan. 7. It cited two people familiar with the matter. This follows a meeting between U.S. President Donald Trump and his Chinese counterpart Xi Jinping in Argentina earlier this month. The two leaders agreed to hold off on additional tariffs for 90 days, to work on disagreements on trade and technology policies.

Nikkei 225 index rebounded 3.9 per cent to 20,077.62. It tumbled more than 5 per cent on Tuesday before recovering slightly a day later. South Korea’s Kospi was less than 0.1 per cent higher at 2,028.44. The Shanghai Composite index lost 0.6 per cent to 2,483.09. The Hang Seng index was 0.7 per cent lower at 25,478.88 while Australia’s S&P-ASX 200 jumped 1.9 per cent to 5,597.20. Stocks climbed in Taiwan and throughout Southeast Asia.

Benchmark U.S. crude dropped 86 cents to $45.36 a barrel in electronic trading on the New York Mercantile Exchange. The contract posted its biggest one-day gain in more than two years and settled at $46.22 a barrel in New York on Wednesday. Brent crude, used to price international oils, shed $1.11 to $53.36 a barrel.

The dollar fell 0.52 per cent to 110.76 yen. The euro rose 0.4 per cent to $1.1391.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

 

Just Posted

The latest numbers on COVID-19 in Canada for Aug. 9

The latest numbers of confirmed COVID-19 cases in Canada as of 4:00… Continue reading

Team says technical issues from ‘unprecedented demand’ left Oilers raffle in limbo

EDMONTON — The Edmonton Oilers’ record-setting online 50/50 raffle from Friday with… Continue reading

Update: Possible drowning at Pigeon Lake involved man and woman from Edmonton

Bodies recovered from Pigeon Lake’s northeastern shores.

Red Deer Region Highland Dancing Association to participate in national dance-a-thon

Central Albertan dancers have missed performing during the COVID-19 pandemic, says the… Continue reading

QUIZ: Do you know the truth?

In what has been described as a post-truth era, how much do you know about truth and lies?

Cast your votes for Best of Red Deer

The Advocate’s Best of Red Deer Readers’ Choice Awards are back. Community… Continue reading

US hits 5 million confirmed virus cases, Europe is amazed

ROME — With confirmed coronavirus cases in the U.S. hitting 5 million… Continue reading

University of Victoria and women’s rowing coach sued over alleged verbal abuse

VANCOUVER — A former member of the University of Victoria’s varsity women’s… Continue reading

Parents, teachers press Quebec to revise back-to-school plan amid COVID-19

MONTREAL — For Politimi Karounis, August is usually spent buying new backpacks,… Continue reading

69 salmonella cases in B.C. linked to red onions, province’s CDC says

VANCOUVER — The BC Centre for Disease Control is warning people in… Continue reading

Black Nova Scotia man ‘overjoyed’ as struggle for land title moves forward

HALIFAX — Christopher Downey finished building his home in 2002 on a… Continue reading

Puncher’s chance: Fighting is up during unique NHL playoffs

The Toronto Maple Leafs’ season was hanging by a thread from one… Continue reading

Most Read