What to watch: European stocks slide, Nissan shares drop as Ghosn fallout continues, bitcoin bloodbath
Here are the top business, market and economic stories you should be watching today in the UK, Europe and abroad:
European stocks slide as tech rout spreads
European stock markets have opened lower on Tuesday, following on from a tech rout that hit US and Asian markets overnight.
Britain’s FTSE 100 (^FTSE) is down 0.5%, Germany’s DAX (^GDAXI) is off 1.3%, France’s CAC 40 (^FCHI) is 0.9% lower, and the Euronext 100 (^N100) is 1% lower.
It follows a tough session in both the US and Asia, where tech stocks were sold off sharply. The S&P 500 (^GSPC) closed down 1.6%, the Dow Jones Industrial Average (^DJI) ended 1.5% lower, and the tech heavy Nasdaq (^IXIC) shed 3% overnight.
In Asia, Japan’s Nikkei 225 (^N225) closed just over 1% lower, Hong Kong’s Hang Seng index (^HSI) ended 2% lower, and China’s benchmark Shanghai Composite (000001.SS) was down 2.1%.
Michael Hewson, the chief market analyst at CMC Markets UK, said in an email: “US markets continued their declines yesterday led once again by the tech sector as concerns about slowing demand for chips and semiconductors prompted further selling pressure, after it was reported that Apple had cut orders on its three newest iPhone models, ahead of the Christmas period.”
Nissan and Mitsubishi shares drop as Ghosn fallout continues
Shares in Nissan (7201.T) and Mitsubishi (7211.T) tanked overnight in Tokyo after the spectacular downfall of automobile executive Carlos Ghosn on Monday.
Nissan shares dropped 5.4% and Mitsubishi shares fell by 6.8%. Ghosn, the chairman of Nissan, was arrested in Japan on Monday for alleged financial misconduct. Nissan said it plans to fire him after a board meeting on Thursday.
Ghosn is a key figure in the Renault-Nissan-Mitsubishi alliance – a longstanding cooperation agreement between the three manufacturers. He is chairman and CEO of the alliance, as well as chairman of both Renault and Mitshubishi.
Renault (RNO.PA) shares were down 4.5% on Tuesday morning and the company said its board will meet today to discuss Ghosn’s future, according to AFP. Earlier in the day France’s finance minister said Ghosn is “no longer in a position where he is capable of leading Renault.”
Bitcoin bloodbath continues
Cryptocurrencies continue to slide on Tuesday, led lower by bitcoin.
Bitcoin is down almost 7% against the pound (BTC-GBP) and 7.3% against the dollar (BTC-USD) in midmorning trade in Europe. It extends the ongoing slump for the cryptocurrency, which has now fallen close to 30% in the last seven days. The wider crypto market has suffered almost exactly the same decline over the period, according to CoinMarketCap.com.
“It does rather look like the bottom is coming out of this market,” said Neil Wilson, chief market analyst at Markets.com. “Bitcoin has easily breached key psychological support at $5000 and with it trading at $4500, the move back to the September 2017 lows at or just below $3000 looks eminently achievable.
“The spillover into other crypto assets matters,” he added.
What to expect in the US
US stock futures were pointing to a lower open in the US. S&P 500 futures (ES=F) were down 0.5%, Dow Jones Industrial Average futures (YM=F) were down 0.5%, and Nasdaq futures (NQ=F) were down 0.8%. The VIX volatility-tracking index (^VIX) was up by 15%.
The following companies have earnings later today:
