Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Taliban Victorious, Chinese Economy Slows, Oil Falls - What's Moving Markets

EconomyAug 16, 2021 06:42AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Geoffrey Smith 

Investing.com -- The Taliban has taken control of the Afghan capital Kabul amid a chaotic evacuation of remaining westerners. The Chinese economy is slowing down due to the clampdown on localized outbreaks of Covid-19 across the country. That's also hitting oil prices. And U.S. stocks are set to open lower amid reports of the Federal Reserve plotting a speedy exit from asset purchases. Here's what you need to know in financial markets on Monday, 16 August. 

1. Taliban overruns Kabul

The Taliban recaptured the Afghan capital of Kabul, 20 years after being driven out by U.S. forces and only weeks after President Joe Biden announced the withdrawal of those troops.  Only a month ago, Biden had said there was no likelihood of the U.S.-trained government forces being overrun.

At least five people were killed in chaotic scenes at Kabul airport that recalled memories of the 1975 evacuation of Saigon at the end of the Vietnam War.

Taliban spokesmen quoted in various reports have pledged a peaceful transition but nonetheless promise to reimpose their strict interpretation of Islamic law in the country.

2. Chinese data point to slowdown

China’s economy is slowing down due to the increasing restrictions it has imposed to stop the spread of the delta variant of Covid-19.

Industrial production and retail sales data for July, released overnight, were both lower than expected. Output growth slowed to 6.4% from 8.3% in June, its slowest rate since September last year. Retail sales growth meanwhile slowed to 8.5% from 12.1%, its slowest rate in six months.

Investment in fixed assets, historically the biggest driver of GDP growth in China, likewise slowed more than expected to only 10.3% growth from 12.6% in June.

China’s zero-tolerance approach to Covid-19 outbreaks shut a terminal at the world’s third-largest port of Ningbo-Zhoushan last week, suggesting that constraints on the country’s external trade are likely to be a feature of upcoming data.

3. Stocks set to open lower; Fed reportedly eyes speedy exit from QE

U.S. stock markets are set to open lower later, chiefly on the back of Chinese data that have again dented the global growth outlook.

By 6:15 AM ET (1015 GMT), Dow Jones futures were down 157 points, or 0.4%, while S&P 500 futures were also down 0.4% and Nasdaq 100 futures were down 0.3%.

Also weighing on sentiment was a Wall Street Journal report claiming that the Federal Reserve is looking at ending its asset purchases by the middle of next year, implying a quicker phase-out of quantitative easing than in 2013, when it began to tighten policy after the Great Recession.

4. Crypto hits $2 trillion market cap again

The crypto universe reclaimed a market valuation of $2 trillion, after a broad-based rally fired by changes to the way the Ethereum blockchain will work in future.

Ethereum plans to move away from the ‘proof of work’ model that requires vast amounts of computing power to mine new coins, an attempt to counter the narrative that cryptocurrencies are environmentally harmful because of their carbon footprint.  Also helping sentiment has been evidence of bipartisan support for the industry in Washington, despite its failure to ensure favorable tax treatment in the wording of last week’s infrastructure bill.

By 6:15 AM ET, Ethereum was up 4.3% at $3,286, while Bitcoin was up 3.0% at $47,286. Dogecoin was also up 13% and Cardano, which rallied some 50% last week, gained 2.2%.  

5. Oil prices slide as Chinese fuel output hits 14-month low

Crude oil prices tumbled again after China’s weak economic data raised doubts over the trajectory for global demand. The industrial production data released earlier showed that independent refiners cut their average daily throughput to the lowest level since May last year.

By 6:30 AM ET, U.S. crude futures were down 1.4% at $67.25 a barrel, while Brent futures were down 1.3% at $69.70.

Data on Friday from the Commodity Futures Trading Commission had shown that money managers cut their net long positions in crude futures and options by nearly 10% in the week through Aug. 10, suggesting that the short-term momentum of the market is weakening considerably amid fears that the pandemic won’t, after all, be controlled this year.

Taliban Victorious, Chinese Economy Slows, Oil Falls - What's Moving Markets
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (12)
Vishal Ahirkar
Vishal Ahirkar Aug 16, 2021 1:11PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
🔴Stay cautious ⚠️As war between taliban and Afghanistan. 🔴They still can do some thing bad in coming days to major economy..Share market don't like uncertainty 🔴😟
Gershom Zvi
Gershom Zvi Aug 16, 2021 10:59AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Nursing home patient economics and politics
John Klan
John Klan Aug 16, 2021 10:46AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
another Biden blunder. The pullout could have been much much better planned!!
dar dar
dar dar Aug 16, 2021 9:04AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
why did we go in the first place
Juniper Ls
Juniper Ls Aug 16, 2021 9:04AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Bin Laden and 9/11
Juniper Ls
Juniper Ls Aug 16, 2021 9:04AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
And Bush and Cheney and Rumsfield and Rice
Juniper Ls
Juniper Ls Aug 16, 2021 9:04AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Bin Laden was harbored in Afghanistan when he orchestrated the 9/11 attacks. When the Taliban would not coordinate his capture and release to the U.S., Bush utilized a ''you're with us or against  us'' doctrine to declare war on all ''enemy combatants'' and whomever harbors or aids them in any manner whatsoever. By then bin Laden had fled to Pakistan. A special ops squad assassinated him several years later during the Obama administration. Same as 20 years ago, the U.S. continues to aid Pakistan.
inderjeet virk
inderjeet virk Aug 16, 2021 8:56AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
almost a defeat like in  vietnam , sad situation feel sorry for afghan people.
Honey Badger
Honey Badger Aug 16, 2021 8:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Two trillion dollars , twenty years time, huge deficit and total return? zero learn lesson and stop interfering in other countries and stop toppling other countries governments.
Entertainment Rw
Entertainment Rw Aug 16, 2021 8:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Entertainment Rw
Entertainment Rw Aug 16, 2021 8:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
When I saw this news i bet on doller but I lose 50 doller at once
Aw wright
AndrewJW Aug 16, 2021 8:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
heading towards a GulfWar3 that will be the Stone Age when they've finished!! it's like the US wanting this to happen to create an excuse of all excuses
Mike ND
Mike ND Aug 16, 2021 8:15AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Time to let China go in there and get there check book out. Have fun
Alice Mae Jones
Alice Mae Jones Aug 16, 2021 8:15AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Their
Honey Badger
Honey Badger Aug 16, 2021 7:18AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Afghanistan 🇦🇫 war end but dicicit will remain next generation have to remember everyday and pay.
Jon Bal
Jon Bal Aug 16, 2021 6:59AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
uh oh... you know all the chairborne rangers and lazyboy generals are gonna have something to say with that headline
Rain Water
Rain Water Aug 16, 2021 6:59AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
lol chairborne
Rain Water
Rain Water Aug 16, 2021 6:59AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
lol chairborne
Cosmic Dust
Cosmic Dust Aug 16, 2021 6:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
two trillion dollars, twenty years time, and total return? zero. should this money manager be fired?! when our politicians can ever be held accountable?
Marco Leon
Marco Leon Aug 16, 2021 6:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Never lmao 🤣
Fajju Khan
Fajju Khan Aug 16, 2021 6:45AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
😭😭😭😭
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email