Markets hit by stronger US dollar and gloom from Next - as it happened
Shares and commodity prices are suffering from fresh US interest rate rise fears, and a big dollop of pessimism from UK retailer Next
- FTSE 100 heading for a triple-digit loss
- Analyst: More volatility ahead
- Next: Toughest year since Lehman Brothers collapsed
- Asian markets hit
- The agenda: Stronger dollar is worrying the City
5.42pm GMT
Here's the detail of the rig count:
5.09pm GMT
Oil prices have pared their losses after the latest US rig count showed a fall last week.
The number of oil rigs dropped by 15 to 372, after a rise of 1 the previous week.
Baker Hughes US Rig Count (Mar 25) 464, previous 476
Oil Rigs 372, previous 387
Gas Rigs 92, previous 89
5.00pm GMT
It was a downbeat end to the shortened trading week for investors. The main damage was done by commodity companies, with metal prices hit by the stronger dollar (up on the back of hawkish comments on interest hikes by various US Federal Reserve members) and oil lower after US stocks rose on Thursday.
In the UK, the FTSE 100 was also hit by the disappointing outlook statement from Next, which lost 15% of its value and helped send fellow clothing retailers Marks & Spencer and Primark-owner Associated British Foods lower. The final scores showed:
4.10pm GMT
As markets remain in negative territory heading towards the close, next week could see further falls, says Chris Beauchamp, senior market analyst at IG:
The shortened week is ending on a downbeat note, as markets look to register their first serious losses since mid-February. Even now, the move lower doesn't really put much of a dent in a remarkable rally off the lows of last month, but if US dollar strength and oil weakness continues, the final week of March could see the downside case accelerate.
So far this week markets have been unable to make upward progress, and with Fed commentary becoming progressively more hawkish the coming slew of US data, including the vital non-farm payrolls report, could be the factor that determines whether the rally blossoms into April or withers on the vine
3.59pm GMT
The pound has steadied, after its earlier falls on growing fears about the repercussions if Britain votes to leave the EU in June's referendum. It fell to its weakest level for two years on a trade weighted basis, but has recovered to trade at $1.4145 and 78.87p a euro, marginally up on the day.
The recovery has been helped by the 11% lead for the Remain camp in the latest Brexit poll, as well as the weak US figures denting talk of an imminent rate rise and putting pressure on the dollar.
3.03pm GMT
Here's more on the poor US durable goods figures:
Poor durable gds #orders -2.8% & #shipments -0.9% Feb. Core shpmts -1.8%y/y & Core ordrs -0.1y/y. #GDP Q1 exp'd 1.3% pic.twitter.com/0uXoX52VgH
After impressive results in January, US durable goods orders have slumped, reflecting a manufacturing sector still in recovery.
Fed Chair Janet Yellen wouldn't have been expecting another large gain by the sector, but the fall of nearly three per cent will be of a concern to some observers.
2.18pm GMT
Over on Wall Street, shares are down in early trading.
The Dow Jones industrial average has dropped by 82 points to 17,420.
2.15pm GMT
More gloomy news. America's service sector companies are suffering from the weakest growth in new orders since the depths of the financial crisis.
Data firm Markit reports that activity across the sector has only risen slightly this month, after being hit by bad weather in February.
Markit US PMI: "PMI surveys suggest the economy grew at a worryingly meagre 0.7% annualised rate in the first quarter".
"The US economy is going through its worst growth spell for three and a half years.
"The lack of a strong rebound in service sector activity in March is a big disappointment, as bad weather had been blamed for part of the weakness in the first two months of the year.
1.48pm GMT
City traders have a new Brexit poll to digest, showing that the campaign to stay in the European Union has a smaller lead.
According to Survation, the Remain side have 46% support, with Leave on 35%, and 19% of the population still making up their mind.
New @Survation telephone poll on #euref
Remain 46% (-2)
Leave 35% (+2)
Undecided 19% (nc)
Fieldwork March 17-19
Another large phone poll lead for Remain - though Survation had a 15% gap in Feb, so fits w. idea of tightening race https://t.co/3my4oVZth3
1.24pm GMT
Wall Street is expected to follow Europe and Asia lower, when trading begins in a few minutes:
Looks like an ugly start is on tap for the U.S. market https://t.co/7rCX62LanV pic.twitter.com/OG3In9vBj7
1.14pm GMT
The European stock selloff is accelerating, sending the FTSE 100 down 106 points or 1.7% to 6092.
Only a handful of share are up in London, while the mining sector continues to lead the market down.
Last time @nextofficial fell this much, we were all worried about bursting dotcom bubbles! https://t.co/Kc3L1ZfHzm pic.twitter.com/bHfSOyJFH9
12.46pm GMT
A flurry of US economic data is heading our way.
First up, the number of Americans filing new claims for unemployment benefit has risen by 6,000, to 265,000.
BREAKING: US weekly jobless claims total 265,000 vs 268,000 estimate https://t.co/Bv40l2sdCi
US Durable Goods -2.8% beats consensus of -3% but prior 4.7% revised down to 4.2% = Net Net worse
12.05pm GMT
The CBI business group has issued its own healthcheck on the UK retail sector, and it's gloomier than the Office for National Statistics's report [see here].
According to the CBI, 31% of retailers reported rising sales this month, while 24% said they were down. That gives a net balance of +7, down from +10 in February and 16% in January.
Weak March CBI survey suggests conditions on the high street aren't as rosy as the official retail data suggest: pic.twitter.com/YqhgVzuvwK
11.35am GMT
European stock markets are stumbling towards the Easter long weekend.
All the main bourses are in the red, with the FTSE 100 shedding 85 points or 1.4% to 6114 points.
If the dollar can keep its footing here it will notch up the first weekly gain in a month against a basket of major currencies.
Despite the apparently benign outlook for the global economy, risks to that view remain notably elevated. Many (including Deutsche Bank, JP Morgan, Morgan Stanley, Goldman Sachs and Societe General amongst them) are all urging investors to lock in recent gains.
10.54am GMT
The cost of protecting against a plunge in the value of the pound has hit new six-year highs this morning, as Brexit fears continue to stalk the City.
Reuters has snapped the details:
10.41am GMT
UK chancellor George Osborne is testifying to the Treasury committee right now, about last week's budget (and the political fallout it has triggered, I suspect).
Related: George Osborne gives evidence to Commons Treasury committee on the budget - Politics live
10.32am GMT
A majority of Britain's bankers believe they'd be better off if Britain stays in the European Union.
"Our survey shows there is almost no appetite from banks for the UK to leave the EU...
However, as the majority of our members have not expressed a position on the matter of UK membership, the BBA will adopt a neutral position in the referendum debate."
9.57am GMT
The latest UK retail sales figure are out....and they show that demand for new clothes has taken a dive.
9.27am GMT
The European Central Bank has warned that the global economic recovery has weakened, meaning 2016 will be challenging - particularly in emerging markets.
In its latest economic bulletin the ECB says:
Global activity moderated at the turn of the year, and is expected to continue expanding at a modest pace. Low interest rates, improving labour markets and rising confidence support the outlook for advanced economies. By contrast, the medium-term outlook for emerging market economies remains more uncertain.
Economic activity in China is expected to continue decelerating, with negative spillovers to other emerging market economies, particularly in Asia, while commodity exporting countries need to adjust further to lower commodity prices.
Here's the CHART that keeps #ECB members up at night: growth in euro-area nominal wages is low and trending dooown. pic.twitter.com/zTouydPkxI
8.47am GMT
The pound is coming under fresh pressure this morning.
Sterling has dropped to a 15-month low against the euro, down 0.3% to a1.2584. That means one euro is worth 79.40p.
Pound's $16 Billion Option Trades Envisage Drop to 1980s Lows https://t.co/pi58Xe0x0D via @business @vkaramanis_fx pic.twitter.com/gEplJEUVl9
8.39am GMT
UK engineering firm Renishaw has also disappointed the City this morning by slashing its profit forecasts.
Renishaw, which specialises in precision engineering for jet engines, wind turbines and medical equipment, warned that it has suffered a fall in orders from Asian customers.
Revenue last year benefited from a number of large orders in the Far East which have not been repeated to the same extent this year, and we have now received information that indicates we are unlikely to achieve the trading levels previously anticipated at the time of our half year results announcement in January 2016.
8.28am GMT
Next shareholders losing their shirt - shares down double digits $NXT
8.23am GMT
After a delayed start, shares in Next have plunged by over 10% after the retailer warned that trading conditions are the toughest he's seen since the collapse of Lehman Brothers.
In a strikingly gloomy statement, chairman Lord Wolfson told shareholders that the coming year "may well be the toughest we have faced since 2008".
It looks as though we may be set for a challenging year, with economic and cyclical factors potentially working against us.
It may well feel like walking up the down escalator, with a great deal of effort required to stand still.
8.11am GMT
European stock markets are falling at the start of trading.
The FTSE 100 has shed 60 points, dragged down by mining stocks.
Global markets are moving into the Easter holiday long weekend on a more cautious note.... as a stronger US dollar following some hawkish Fed commentary weighs on the commodities space.
7.58am GMT
Iron ore is also being hammered this morning.
The SGX AsiaClear contract for May settlement sank as much as 5.8 percent to $49.90 a ton in Singapore....
Iron ore has been on a wild ride in March as investors sought to gauge conflicting economic signals from China against still-elevated port stockpiles and shifts in the U.S. currency.
- Asia stocks fall
- 1-week low
- $ gains
- Oil below $40
- Iron ore a 6%
- Fed rate rise?https://t.co/DrwWcsPRoZ pic.twitter.com/sXB5dPTfGK
7.51am GMT
Asian stock markets have hit a one-week low, as those worries over the stronger US dollar rippled through Tokyo, Shanghai, Seoul and Hong Kong.
The Chinese stock market led the selloff, down 1.7%, with the Hong Kong Hang Seng close behind.
The oil price and equity markets are teetering on the verge of a much larger pullback as hawkish Fed officials have lifted the US dollar this week.
Markets in Asia look to be rolling over as the whole region suffered steady losses throughout the session. Chinese Premier Li Keqiang's upbeat speech at the Bo'ao Forum did little to soothe investor concerns as the Shanghai Composite had its worst day in two weeks.
Good morning from Berlin. Asia stock mkts drop as as #Oil below $40 & other commodities lower amid resurgent Dollar. pic.twitter.com/rOgQl2WsM5
7.31am GMT
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
A succession of Federal Reserve policymakers have come out in recent days suggesting a rate rise in April is a real possibility, which rather begs the question as to why there was so little dissent over the decision itself last week.
Granted, the majority of this week's speakers haven't got a vote on the committee this year but the level of hawkishness does jar somewhat with last week's dovish message, and could present problems for Janet Yellen if the economic data shows significant signs of improvement between now and the end of April.
Our European opening calls:$FTSE 6152 down 47
$DAX 9972 down 51
$CAC 4394 down 30$IBEX 8865 down 63$MIB 18357 down 105
