Rally Ends: Global Stocks Break 6-Week Winning Streak; Iron Ore Soars

One day after the post-Christmas rally appeared to finally reverse, when the S&P posted its 3rd biggest loss of 2019, overnight US equity futures and Asian markets continued to sink as concerns over economic growth and the lack of any sign of a resolution to the U.S.-China trade row pushed global stock markets toward their first weekly loss since December, even as European stocks were steady.

As a result, global shares fell for a third straight day on Friday and were set to post their first weekly loss in seven. The MSCI All-Country World Index was down 0.3% on the day. It was down for a third straight day and was set to break a six-week streak of gains.

reasuries and bunds edged higher, with the German 10-year bund yield falling closer towards the zero percent mark and the U.S. 10-year Treasury yield hitting its lowest point in a week, while the Bloomberg Dollar Index headed for its best week since August as traders rushed to havens amid a broader risk off mood. The Australian dollar fell as traders positioned for an interest-rate cut, while the pound slid as U.K. Prime Minister Theresa May looked to break an impasse over her Brexit plan.

The Stoxx Europe 600 Index was mixed, with drops in automakers offsetting increases in chemicals and media shares. Weak earnings saw a subdued open for European stocks although most major indices climbed into the black for the day, putting the pan-European STOXX 600 in positive territory before fading -0.3% at publication time. Autos were the worst-performer sector in the broader index, declining for a third day amid growing China trade war fears. Valeo (-3.8%), Faurecia (-2.3%), Hella (-1.9%) among leading fallers; Fiat drops 1.4% as sector gauge retreats 1.1%. Spain’s IBEX fell half a percent. As usual, there was fresh dismal economic news out of Europe, which today came from Italy, where Industrial Output plunged -5.5% Y/Y, and the Netherlands, whose Industrial Production plunged 4.2%

Earlier, Asian markets dropped, with MSCI’s index of Asia-Pacific shares ex-Japan shedding 0.5%, easing back from a four-month peak touched the previous day.

The European Commission on Thursday slashed its forecasts for euro zone economic growth this year and next, stoking concern that a global slowdown is spreading to Europe as businesses and investors grapple with trade friction.

Contracts on the S&P 500, Dow and Nasdaq Composite all declined alongside shares in Asia following news that President Donald Trump is unlikely to meet Chinese President Xi Jinping before the March 1 deadline for more tariffs. The renewed fears over further protectionist measures also pushed emerging market equities lower. China’s markets remain shut for Lunar New Year

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https://www.zerohedge.com/news/2019-02-08/rally-ends-global-stocks-break-6-week-winning-streak-iron-ore-soars

PG&E earnings soon

Live Gold Price

High: 1,315.40

Low: 1,307.50

$1314.10

https://www.dailyfx.com/crude-oil

https://www.kitco.com/charts/livegold.html

+4.30 +0.33%

EU Won't Block Controversial Nord Stream 2 Pipeline

Update: Following reports that France would effectively kill the controversial Nord Stream 2 LNG pipeline, EU officials including German Chancellor Angela Merkel affirmed on Friday that an agreement has been reached which will allow construction of the pipeline to move forward - handing a major victory to Germany and Russia (and a stunning defeat for President Trump).

At a meeting in Brussels on Friday, EU diplomats advanced a draft gas-market law, initially proposed in late 2017, while greatly cutting back a provision that would have effectively blocked the pipeline.

The deal will allow negotiations with the European Parliament on a final version of the legislation to begin. Both sides are aiming for an official agreement as soon as next week, and no later than the end of May.

• • *

As The European Union and the US struggle to block the controversial international pipeline project Nord Stream 2, a 760-mile pipeline that would allow Russia to export LNG directly to Germany - depriving Ukraine of badly needed gas transit fees along the current route for Russian supplies - France on Friday officially announced its opposition to the project, revealing that it would vote with a bloc of EU nations seeking to torpedo the project.

Earlier reports suggested that the opposition in Paris is rooted in the fear that the pipeline would confer too much "strategic power" on Moscow, potentially complicating its relationship with Brussels. Reuters has previously reported that Paris's vote against the project could rob Germany of the blocking minority it needs to move the project forward.

But later on Friday, German Chancellor Angela Merkel said a deal had been reached on Nord Stream 2.

A vote is expected to be held next week on an amendment to the EU's gas directive that could allow the European Commission to cancel the pipeline project, according to Sputnik. The project itself has been spearheaded by Gazprom and five European energy companies, and engineers for Gazprom said recently that the raw pipeline could be finished as early as later this year.

https://www.zerohedge.com/news/2019-02-08/france-vote-against-nord-stream-2-pipeline-possibly-killing-project

>>5078000

trips confirm