Stocks Fall Amid China Worries

9 November, 2018

European stocks slid, following a retreat in Asia, amid growing concerns about a slowdown in China and policy makers’ steps to address it. The dollar advanced as the Federal Reserve stayed on track for a December rate hike. Mining and energy shares led a drop in Europe’s main equity gauge after crude oil entered a bear market. Futures contracts pointed to second day of declines for U.S. stocks. Equities in Hong Kong and China led losses in Asia, with financial shares doing particularly poorly following news that Beijing plans to set quotas for banks to pump credit into private companies. Treasury yields edged lower.

Softer Chinese producer-price gains, weak car sales and a disappointing outlook from a top online travel company combined to reignite lingering concerns about the health of the world’s second-biggest economy. That’s capturing investor attention after a Fed rate meeting on Thursday that offered few surprises, with policymakers repeating their outlook for “further gradual” increases. Meanwhile, the offshore yuan held this week’s drop, amid little sign of an end to the U.S.-China trade war in the wake of the midterm elections. The pound weakened and gilts gained amid ongoing speculation over a potential Brexit deal. Emerging-market stocks and currencies slid.

The Stoxx Europe 600 Index dipped 0.5 percent as of 9:22 a.m. London time, the largest decrease in two weeks. Futures on the S&P 500 Index fell 0.4 percent, the biggest fall in a week. The MSCI Asia Pacific Index declined 1.1 percent. The MSCI Emerging Market Index sank 1.5 percent to the lowest in more than a week on the biggest tumble in more than two weeks. The Bloomberg Dollar Spot Index climbed 0.2 percent to 1,206.62, the highest in more than a week. The euro declined 0.2 percent to $1.1337, the weakest in more than a week.


Source link  
OPEC considers production cuts

Saudi Arabia, Russia and their oil-producing allies are considering a range of options to maintain stability in the oil market just weeks ahead...

More Brexit votes, pound volatility?

At the start of trading on Monday, the British pound fell 0.6%, as a crucial Saturday vote on the new Brexit plan was postponed. Prime Minister...

New Chinese stimulus promises

China continues to struggle for economic growth, as it aims to resist the effect of trade disputes with the U.S. The editor of an influential...


Best currency rally heading for a crash

The analyst who most accurately predicted the ruble's rally in the second quarter is now its most pessimistic forecaster. The Bank of Russia's switch to...

Trade truce 2.0, or new currency wars?

Tensions around trade wars subsided following news reports that both the US and China leaders are set to hold an extended meeting...

Experts predict where crude could go

A top military aide to Iran's supreme leader warned over the weekend that The first bullet fired in the Persian Gulf will push oil prices above...


Morgan Stanley sees global recession

Investors are overlooking the threat posed by the U.S.-China trade war, which could send the global economy into recession in less than a year...

Oil at $100: how will it affect economy?

Brent crude has risen about 33 percent this year and is close to the highest in six months. While higher prices due to strong demand typically reflects...

Oil sector will lose 95% by 2050

Companies in the oil and gas sector, including large groups such as Shell, BP and Exxon, could lose 95% of their value by 2050 if governments...

  


Share it on:   or