LONDON (Reuters) – Oil toiled at a more than one-year low after its worst month in a decade on Friday, while most major markets were keeping moves tight ahead of a weekend meeting between U.S. and Chinese presidents Donald Trump and Xi Jinping.
The German share price index, DAX board, is seen at the stock exchange in Frankfurt, Germany, January 30, 2018. REUTERS/Staff/Remote
Europe’s main share indexes in London, Frankfurt and Paris all sank [.EU], and Wall Street futures were pointing down too after the latest batch of disappointing Chinese data had made for another twitchy Asian session.
Frankfurt’s export-heavy DAX and Britain’s domestic-focused FTSE 250 were both staring at their fourth consecutive month of falls.
For the DAX it is the worst run since the back end of 2008 and was made worse again as Deutsche Bank shares fell to an all-time low as police searched its headquarters for a second day in a money laundering scandal linked to the Panama Papers.
November’s real humdingers though have been oil and Apple which have plunged 21 percent and 18 percent respectively, the worst month for either since the financial crisis a decade ago.
“Expectations at the start of the fourth quarter were for a melt-up in risky assets, but two of the biggest trends have been a reversal of some of the few returns we have seen this year, which have been in oil and in tech,” said head of macro strategy at State Street Global Markets’ Michael Metcalfe.
“Also the market seems to be going into the G20 meeting with very low expectations of a ceasefire in the trade war. That may very well be correct but politics has proved very hard to predict this year.”
Anticipation ahead of that meeting ensured cautious moves in the currency and bond markets.