London
9 °C
Manchester
10 °C
Glasgow
Dublin
Belfast
Washington
Denver
6 °C
Atlanta
5 °C
Dallas
Houston Texas
New Orleans
12 °C
El Paso
18 °C
Phoenix
Los Angeles
20 °C
11 °C
-20 °C
0 °C
Gold, stocks drop on economic jitters / Photo: GREG WOOD - AFP
NYSE - LSE
| RBGPF | 0% | 78.35 | $ | |
| BCC | -1.66% | 73.05 | $ | |
| JRI | 0.29% | 13.79 | $ | |
| GSK | -0.33% | 48.41 | $ | |
| SCS | -0.56% | 16.14 | $ | |
| CMSC | -0.21% | 23.43 | $ | |
| RELX | -0.55% | 40.32 | $ | |
| CMSD | -0.3% | 23.25 | $ | |
| NGG | -0.66% | 75.41 | $ | |
| RIO | -0.92% | 73.06 | $ | |
| RYCEF | -0.34% | 14.62 | $ | |
| BCE | 1.4% | 23.55 | $ | |
| BTI | -1.81% | 57.01 | $ | |
| AZN | 0.17% | 90.18 | $ | |
| VOD | -1.31% | 12.47 | $ | |
| BP | -3.91% | 35.83 | $ |
Gold, stocks drop on economic jitters
Gold prices sank further Wednesday and major stock markets mostly dropped on fresh economic jitters caused by China-US trade uncertainty and some weak company earnings.
London's benchmark FTSE 100 index was a rare climber as the pound dropped on better-than-expected UK inflation data that signalled another potential interest-rate cut from the Bank of England this year.
But after Chinese stock indices ended lower, major eurozone equity markets were in the red in midday trading.
Focus was very much on gold, with traders "desperately trying to gauge whether... (Tuesday's) historical collapse was indicative of a new period of weakness or simply a case of blowing off steam after a dramatic surge into record highs", said Joshua Mahony, chief market analyst at Scope Markets.
Gold, seen as a safe-haven investment, tanked as much as six percent at one point Tuesday and continued to fall during Asian trading hours.
The precious metal dropped to around $4,000 an ounce Wednesday after chalking up a record peak above $4,381 Monday.
The retreat hit share prices of gold miners, while individual companies were impacted by earnings updates.
In Paris, L'Oreal shed 6.5 percent after the cosmetics giant posted third-quarter earnings that undershot analysts expectations.
On the upside, Barclays and UniCredit posted positive results, easing fears of a new banking crisis emerging in the United States.
There were also concerns regarding US-China trade relations after President Donald Trump said a meeting with his counterpart Xi Jinping might not occur.
Trump said Tuesday that he expected to seal a "good" trade deal with Xi at the APEC summit in South Korea next week, adding that "I think we're going to have a very successful meeting. Certainly, there are a lot of people that are waiting for it."
But he then added: "Maybe it won't happen. Things can happen where, for instance, maybe somebody will say, 'I don't want to meet. It's too nasty.' But it's really not nasty."
Oil prices rallied Wednesday on speculation that India would agree to cut its purchases of the commodity from Russia as part of a trade deal with the United States.
Trump has claimed New Delhi pledged to reduce its imports from Russia, which Washington says helps finance Moscow's war in Ukraine.
Indian officials have neither confirmed nor denied any policy shift.
- Key figures at around 1100 GMT -
London - FTSE 100: UP 0.9 percent at 9,511.17 points
Paris - CAC 40: DOWN 0.2 percent at 8,241.52
Frankfurt - DAX: DOWN 0.1 percent at 24,320.53
Tokyo - Nikkei 225: FLAT at 49,307.79 (close)
Hong Kong - Hang Seng Index: DOWN 0.9 percent at 25,781.77 (close)
Shanghai - Composite: DOWN 0.1 percent at 3,913.76 (close)
New York - Dow: UP 0.5 percent at 46,924.74 (close)
Euro/dollar: DOWN at $1.1587 from $1.1606 on Tuesday
Pound/dollar: DOWN at $1.3315 from $1.3374
Dollar/yen: DOWN at 151.80 from 151.91 yen
Euro/pound: UP at 87.05 pence from 86.78 pence
Brent North Sea Crude: UP 1.7 percent at $62.35 per barrel
West Texas Intermediate: UP 1.8 percent at $58.24 per barrel
P.Schubert--BlnAP
