What you need to know before the open – 27/01
After Friday’s falls, European stocks are expected much lower this morning, bracing themselves for another day of volatility.
US markets posted their worst daily declines since 2011, as emerging markets felt the full force of economic instability in Argentina, Ukraine and Turkey.
Selloffs picked up apace, dragging down Europe and the US. Investors have been pulling back from risk assets, returning to traditional havens like gold, the dollar and the yen.
Over in Asia, the Nikkei saw its second-greatest fall this year, dropping 2.5 per cent in Monday trading. The broader Topix did even worse, shedding 2.8 per cent – its worse session since August. And Shanghai shares saw their biggest decline in three weeks.
Markets are also facing uncertainty around the Fed's trimming of its asset purchases – it’s looking more and more likely that it could announce a further taper of $10bn later this week, given the improving economic data we’ve been seeing here, in the US and in some areas of the Eurozone.
Share markets seen sharply lower at open after big falls in Asia overnight. Financial bookies: FTSE100 -72, DAX -53, CAC40 -26
— Peter Hoskins (@PeterHoskinsSky) January 27, 2014
ETX Capital #morningcall: FTSE100 down 84 points, the DAX lower by 76 points and CAC40 lower by 37
— ETX Capital (@ETXCapital) January 27, 2014
Key events:
- German IFO business climate for January at 9.00am. Expected at 110.0 from 109.5.
- US Markit services PMI for January at 1.58pm. Expected at 56.2 from 55.7.
- US new home sales for December at 3.00pm. Expected at 457,000 from 464,000.
- US Dallas Fed manufacturing business index for January at 3.30pm.
- German Buba president Weidmann speech at 6.00pm.