Egypt prepares to tackle seasonal air pollution in Nile Delta    Egypt's Sports Minister unveils national youth and sports strategy for 2025-2032    27 Western countries issue joint call for unimpeded aid access to Gaza    Egypt, Jordan to activate MOUs in health, industrial zones, SMEs    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt, Uganda sign cooperation deals on water, agriculture, investment    Egypt–Jordan trade hits $1 billion in 2024: ministry report    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egyptian pound closes high vs. USD on Tuesday – CBE    Edita Food Industries Sees 72% Profit Jump in Q2 2025, Revenue Hits EGP 5 Billion    Egypt, Colombia discuss medical support for Palestinians injured in Gaza    Australia to recognise Palestinian state in September, New Zealand to decide    Trump orders homeless out of DC, deploys federal agents and prepares National Guard    Egypt, Germany FMs discuss Gaza escalation, humanitarian crisis    Egypt, Huawei explore healthcare digital transformation cooperation    Global matcha market to surpass $7bn by 2030: Nutrition expert    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt's govt. issues licensing controls for used cooking oil activities    Egypt to inaugurate Grand Egyptian Museum on 1 November    Oil rises on Wednesday    Egypt, Uganda strengthen water cooperation, address Nile governance    Egypt's Sisi: Egypt is gateway for aid to Gaza, not displacement    Egypt, Malawi explore pharmaceutical cooperation, export opportunities    Korean Cultural Centre in Cairo launches folk painting workshop    Egyptian Journalist Mohamed Abdel Galil Joins Golden Globe Voting Committee    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







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Stocks, oil tumble as grim China PMI sparks growth fears
Published in Ahram Online on 21 - 08 - 2015

Stock markets tumbled on Friday after a survey showed Chinese factories contracted at their fastest pace since the depth of the global financial crisis in 2009, sending investors scurrying to the safety of bonds and gold.
Emerging market assets took a hammering, and oil prices were on track for their longest losing streak since 1986, as fears of a China-led deceleration in global growth gripped markets.MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 2.4 percent to its lowest since July 27, 2012, for a weekly loss of 6.1 percent.
Shanghai stocks .SSEC dropped 4 percent to below the 200-day moving average for the first time since July 2014. That brought losses for the week to 11 percent. The Hang Seng index .HSI in Hong Kong was down 2.4 percent for a weekly loss of 7.4 percent.
Markets in countries whose economic fortunes were closely linked to China's growth tumbled. Japan's Nikkei .N225 declined 2.9 percent, for a weekly loss of 5.2 percent. South Korea's Kospi .KS11 shed 1.6 percent, and was 4 percent lower for the week.
European markets are set to follow suit, with financial spreadbetter IG expecting Britain's FTSE 100 .FTSE to open 144 points lower, or down 2.2 percent, Germany's DAX .GDAXI to open 325 points lower, or down 3.1 percent, and France's CAC 40 .FCHI to open 121 points lower, or down 2.5 percent.
The S&P 500 .SPX and the Dow Jones index .DJIA slumped below their 200 day averages overnight.
The mood in markets, already soured by the weakness on Wall Street, darkened further on the grim reading of China's factory activity.
The Caixin/Markit manufacturing index showed activity in China's factory sector shrank at its fastest pace in almost 6 1/2 years in August as domestic and export demand dwindled. That decline, coming on the heels of weaker-than-expected data in July, stoked fears of a slowdown in the world's second-biggest economy.
"Markets are pricing in the worst right now," said Herald Van Der Linde, head of Asian equity strategy at HSBC.
The MSCI emerging markets index .MSCIEF slid 1.7 percent to the lowest since Aug. 19, 2009.
U.S. stock futures fell almost 0.5 percent to a six-month low in Asian trade after the Chinese PMI was released.
The Australian dollar AUD=D4, considered a liquid proxy for China demand, slid to $0.7285 at one point and was last trading at $0.7304, down 0.5 percent for the day.
The market ructions sent gold XAU=up to its highest level in more than a month.
Safe-haven U.S. Treasury yields also slipped further. They were already feeling a downward pull after minutes from the Federal Reserve's July meeting offered little clue of a near-term rate hike, denting expectations of a tightening in September.
"The U.S. markets have held up well of late, being viewed as somewhat of a safe-haven," wrote Chris Weston, chief market strategist at IG in Melbourne. "This view seems to have deteriorated somewhat with the S&P 500 closing below its multi-month trading range – a fate the credit markets and the U.S. yield curve have been screaming for some time."
Lower Treasury yields in turn weighed on the dollar. The currency traded at 122.82 yen JPY=, the lowest in more than five weeks, after sinking from an overnight high of 124.16.
The euro hovered near a two-month high at $1.1290 EUR= after surging 1.1 percent on Thursday.
In commodities, crude oil resumed its downward trend. U.S. crude CLc1 was headed for its eight straight weekly decline, slipping 0.5 percent to $40.85 after touching a multi-year low of $40.21 on Thursday.
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