(MENAFN- AFP) Stock markets and oil prices retreated Monday, while the pound hit an 18-month low amid reports the British government will delay a crucial parliamentary vote on Brexit.
Traders were digesting a menu of high risks to the global economy, notably the China-US trade row, signs of weakness in the Chinese and US economies, growing uncertainty and confusion over Brexit and volatile oil prices.
Adding to the trade friction between Washington and Beijing was a Chinese court ruling ordering a ban in the country on iPhone sales in a patent dispute between US chipmaker Qualcomm and Apple, according to a Qualcomm statement.
Apple shares briefly dropped more than two percent shortly after Wall Street opened, taking the brand's fall in its share price since early October to more than 30 percent.
Qualcomm rose 2.8 percent while the Dow gave up 0.2 percent in early trading.
"It's shaping up to be another tough week in financial markets," said Craig Erlam, senior market analyst at Oanda trading group.
Negotiating its pothole-strewn road towards Brexit, Britain was digesting official data showing sluggish growth in October on a stalling car sector when reports emerged that Prime Minister Theresa May will delay a parliamentary vote to back her deal to leave the EU.
Earlier, the European Court of Justice had ruled that Britain was free to halt withdrawal from the bloc unilaterally in response to a suit from a group of Scottish politicians.
David Cheetham, chief market analyst at XTB UK, said delaying the vote would only deepen uncertainty.
"The move may have spared an embarrassing parliamentary defeat for the PM but it will no doubt see those calls for her to be replaced grow ever more vociferous," Cheetham said.
- 'Increasingly untenable' -
"The negative reaction in the markets is more likely due to what it means for her position rather than the failure to win the vote -- with even her staunchest supporters already highly sceptical as to whether the (Brexit) bill would pass."
He added that "(May's) position is no doubt becoming increasingly untenable."
London's FTSE-100 index briefly edged into positive territory on the rumours before sliding back along with other major markets.
Elsewhere Monday, oil prices slid on profit-taking, having surged ahead of the weekend as OPEC and other key crude producers including Russia agreed to cut output by 1.2 million barrels a day.
Russian Energy Minister Alexander Novak said the agreement "should help the market reach a balance" after prices plunged by about a third from their four-year highs seen at the start of October.
"Oil's future rests on trade wars and weakening data, and whether either or both of these factors will start to ease in coming months, boosting demand expectations," noted Chris Beauchamp, chief market analyst at IG.
In Asia, China on Monday ratcheted up its protest over the arrest of an executive of telecom giant Huawei on a US warrant in Canada, calling reports of her treatment "inhumane" as she seeks her release on bail for health reasons.
China's latest tirade over the case came as Meng Wanzhou, the daughter of the company's founder, faces a Canadian court's decision on bail later Monday in Vancouver.
US President Donald Trump and Chinese counterpart Xi Jinping agreed at the G20 this month to a 90-day ceasefire in the multi-billion-dollar tariffs row that will allow officials to find a resolution. A threatened hike in levies on Chinese imports will be imposed if no agreement is reached.
- Key figures around 1500 GMT -
New York - Dow Jones: DOWN 0.2 percent at 24,331.19 points
London - FTSE 100: DOWN 0.3 percent at 6,759.57
Frankfurt - DAX 30: DOWN 0.8 percent at 10,697.58
Paris - CAC 40: DOWN 0.6 percent at 4,782.95
EURO STOXX 50: DOWN 0.3 percent at 3,048.61
Tokyo - Nikkei 225: DOWN 2.1 percent at 21,219.50 (close)
Hong Kong - Hang Seng: DOWN 1.2 percent at 25,752.38 (close)
Shanghai - Composite: DOWN 0.8 percent at 2,584.58 (close)
Pound/dollar: DOWN at $1.26.32 from $1.2742 at 2200 GMT Friday
Euro/dollar: UP at $1.1407 from $1.1406
Dollar/yen: UP at 112.71 yen from 112.68 yen
Oil - Brent Crude: DOWN 92 cents at $60.75 per barrel
Oil - West Texas Intermediate DOWN $1.08 cents at $51.53
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