Economy

Chinese equity plunge leads world stocks lower as growth fears haunt

Chinese equity plunge leads world stocks lower as growth fears haunt

The US Fed has indicated that it has put interest rate rises on hold but has not yet taken steps to ease monetary policy. The deets goes with 2019 growth forecast falling through to 1.1% from an earlier 1.7% while inflation also saw a sharp downturn to 1.6% from 2.1%. Markets will continue gauging the global impact of slower growth on the world's second-largest economy. The US managed to buck the trend, largely as a result of the stimulus provided by the Trump administration's tax cuts.

Reviewing the factors which had led to the decision to reverse course, Draghi pointed to weaknesses particularly in the manufacturing sector, "reflecting the slowdown in external demand" compounded by some country and industry specific factors.

The stock market rally since the start of the year followed a torrid 2018, but this latest flurry of investment is at odds with 2019's disappointing economic data.

In a further sign that the ECB's new guidance had prompted investors to reassess the outlook for rates and inflation, long-term inflation expectations fell back.

As for other precious metals, silver for May delivery was up 30.9 cents, or 2.05 percent to close at 15.349 dollars per ounce.

The Stoxx Europe 600 Index sank 0.9 percent. This followed a contraction of 0.1 percent in this third quarter.

China's Huawei sues US over federal ban on its products
It also says the National Defense Authorization Act violates a bill of attainder clause by "singling out Huawei for punishment". Huawei said it filed the lawsuit in the Eastern District Court in Plano, Texas where it has its United States headquarters.

"There is reason to argue that the European Central Bank would need to keep rates lower than beyond the guidance date because if you look at their inflation forecasts out to 2021, you would need some form of accommodation to reach these levels of growth", said ING senior rates strategist Benjamin Schroeder.

The data knocked Chinese stocks off the 20-month highs hit earlier in the week, with mainland equity indexes plunging more than 4 percent in their worst day in five months.

Asia Pacific Market Open Talking Points Risk appetite deteriorated after dismal European Central Bank economic projections EUR/USD sunk through support levels, eyeing June 2017 lows next Markets eye China trade data to monitor impact of slowing growth Build confidence in your own EUR/USD strategy with the help of our free guide!

The contraction was driven by Germany which recorded an annual 0.9 percent decline in output per hour worked.

The Bloomberg Commodity Index fell 0.1 percent. It showed that ten years after stocks hit their low following the global financial crisis, investors could still rely on "exceptional liquidity support from systemically important central banks".