Good morning! Here’s what you need to know in markets on Friday.
Global stocks officially entered a bear market on Thursday evening. The MSCI Index, closed down 20% from recent highs to meet the technical definition of a bear market. The index gauges large and mid-cap stock performance across 23 of the world’s largest stock markets, and peaked last May. It fell about 1% Thursday.
The president of the Eurogroup has played down fears of a new banking crisis. Eurogroup chief Jeroen Dijsselbloem has played down fears of a new banking crisis and insisted that eurozone banks are stronger than they were a few years ago. “I believe that in the eurozone, structurally, we are in a much better place than we were a few years ago. That also goes for our banks,” he said, speaking at a press conference in Brussels on Thursday.
Stocks across Asia got slammed during Friday trade. Stocks in Japan were absolutely destroyed in early trade on Friday. The Nikkei and Topix indexes, the major benchmarks in Japan, were down over 5% on Friday morning, and didn’t recover much over the day. The Nikkei closed down by 4.84%, while in South Korea the KOSPI fell 1.41%.
JP Morgan’s chief executive has bought $26 million (£18 million) of shares in the bank. Jamie Dimon has bought 500,000 shares in the bank, according to a person familiar with the matter. The share purchase cost around $26 million, according to the person. JP Morgan shares have fallen by around 20% so far this year, and the purchase is likely intended as a sign of confidence in the bank.
It’s a big day of data in the eurozone. On Friday morning, the eurozone’s biggest economies, as well as the whole euro area will report their quarterly GDP figures. We’ll also get German consumer price index data, and eurozone industrial production figures.
The world’s biggest powers have agreed that we need a quick solution in Syria. At talks attended by the likes of US secretary of state John Kerry, and Russian foreign minister Sergey Lavrov, it was agreed that the Syria crisis needs to be tackled “by introducing a gradual cessation of hostilities and quick humanitarian aid with a view to creating conditions to revive peace talks,” Reuters reports.
The price of oil surged overnight. At 6:45 a.m. GMT, the price of both major oil benchmarks is up by around 4.5% as oil rallies from the 12-year lows it hit in trading on Tuesday. Brent, the European benchmark is up by 4.6% to $31.45 per barrel, while WTI crude is trading at $27.48, a rise of 4.8% on the day. On Thursday evening oil was initially sent higher by a tweet from a Wall Street Journal reporter saying that OPEC is “ready to cooperate on a cut” in oil output.
Stocks will hit their bottom within two or three days. According to Wall Street super analyst Tom DeMark American shares will
find a bottom at 1,792 for S&P 500 futures and 1,797 for the index. The S&P closed at 1,829 on Thursday. DeMark is a legendary market technician known for making big and specific market-timing calls.
Christine Lagarde looks set to get a second term as the managing director of the IMF. Lagarde, the former French finance minister, has been IMF boss since 2011, with her term set to expire in the summer. It is widely reported that no challengers have put themselves forward to take over Lagarde’s role, and as such, she will likely be re-appointed.
Activist investor Carl Icahn has won a seat on the board of US financial group AIG. Icahn, and fellow billionaire fund manager John Paulson have been lobbying for seats on the board for months, and have finally got their wishes. In October, Icahn sent a public letter to the company’s CEO, Peter Hancock, saying that the company continued “to severely underperform” and was “too big to succeed.” Icahn will not personally sit on the board, but will send a representative.
Business Insider Emails & Alerts
Site highlights each day to your inbox.