Daily Business Wrap - Global markets in the red - video Dailymotion

Gulf News

Global markets struggled to regain their footing on Wednesday after getting hammered on Tuesday night. The Dow Jones Industrial Average dropped over 2 per cent Tuesday night, the second day in a row it had seen a major drop.

Transcript

00:00Hello everybody, this is Scott Sugar, I'm the business editor here at Gulf News.

00:05Alright, hang on to your hats, it's going to be another rough night.

00:08Now, if you haven't seen the news from last night, what we saw was a global market sell-off.

00:14The Dow Jones Industrial fell about 500 points and that's following the previous day where it dropped about 400 points.

00:21Markets across the world are red today and there is some concern about oil,

00:26which has dropped almost 4% last night, it's down to about $62, $63 a barrel.

00:31Everyone's asking, well, what's going on?

00:33Well, there's a lot of concern about there, about a couple of things specifically.

00:37First, of course, is corporate earnings.

00:39Everyone's been looking at those for some time.

00:41They've been on a rise now for almost nine years and a lot of markets are saying they're beginning to peter out.

00:45On top of that, we have the global trade war, which is still dragging on

00:49and people are beginning to see effects of it in the marketplace and in prices

00:53and those are also beginning to have an effect on the markets and the markets are simply getting spooked

00:58and people are feeling the best place to put their money right now is back in good old hard cash.

01:03Now, there's also a concern about energy and this is also based on concern about long-term global growth.

01:08Energy is down.

01:10It's probably going to continue to go in, but we're really waiting for this afternoon's announcement of U.S. stockpile information,

01:17which is expected to not necessarily be.

01:20There may be another oil glut and that could see prices fall even further.

01:25All right.

01:26That is the main focus for today and we'll be watching this closely throughout the night and we'll see how things open up.

01:31We might actually see some, a little bit of a green when the U.S. markets open up,

01:35but people are saying in the long term, it's still going to be a rough night.

01:39All right, everyone.

01:40I'm Scott Shuey.

01:41Keep checking back at gulfnews.com for the latest news.

01:43Thanks for watching.

01:47Music.

01:48.

Daily Business Wrap - Global markets in the red

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