Global stocks slide on worries about investing in China
- Retail sales in the United States increased in August
- Indices: Dow down 0.18%, S&P down 0.16%, Nasdaq up 0.13%
- Dollar hits nearly three-week high
- Gold drops more than 2%
NEW YORK, Sept. 16 (Reuters) – Global stock markets edged down globally on Thursday, with investment concerns in China and a mixed day on Wall Street outweighing positive economic data in the United States.
All three major indices spent much of the day in negative territory as rising US Treasury yields put pressure on market-leading tech stocks and the rising dollar weighed on exporters. Read more
International investors who have crammed into China in recent years are now bracing for one of its big downturns as problems with over-indebted real estate giant China Evergrande (3333.HK) come to a head.
The decrease in resources against 2,000 billion yuan ($ 305 billion) in liabilities wiped out nearly 80% of the developer’s stock and bond prices, and an $ 80 million coupon payment is now looming next week . Read more
Hong Kong’s Hang Seng Index fell to its lowest level since the start of the year.
A report from the US Department of Commerce showed on Thursday that retail sales rose unexpectedly in August, indicating that the US economic recovery is strengthening on positive trends in consumer spending. Read more
Strong data pushed safe haven gold down nearly 3%.
However, the US labor market remains under pressure, with first jobless claims increasing slightly more than expected last week.
âThe categories (of retail spending) that were strongest in August were in the COVID beneficiary categories,â wrote Ellen Zentner, chief U.S. economist at Morgan Stanley.
“Now incorporating today’s retail sales release, we are raising our actual tracking (personal consumption spending) to + 1.9% and GDP to + 5.0%.”
The MSCI Global Equity Index fell 0.25% for the last time, following an all-time high on September 7. The MSCI’s largest Asia-Pacific stock index outside of Japan (.MIAPJ0000PUS) closed down 0.83%.
European stocks resisted the trend and the European STOXX 600 closed 0.44% higher (.STOXX).
The Dow Jones Industrial Average (.DJI) lost 63.07 points, or 0.18%, the S&P 500 (.SPX) lost 6.95 points, or 0.16%, and the Nasdaq Composite (.IXIC) added 20.40 points, or 0.13%.
Markets remain focused on next week’s Federal Reserve meeting to see when the US central bank will start cutting stimulus measures, especially after the wave of US economic data released this week.
Data from the U.S. Department of Labor on Tuesday showed inflation calmed down and may have peaked, but inflation in Britain was the highest in years, data showed Wednesday. Read more
The dollar index rose 0.441%, with the euro down 0.41% to $ 1.1767.
The yield on 10-year treasury bills US10YT = RR rose 2.9 basis points to 1.333%.
Spot gold fell 2.3% to $ 1,751.53 an ounce. US gold futures fell 2.27% to $ 1,751.70 an ounce.
Oil prices stabilized on Thursday after hitting a multi-week high a day earlier as the threat from Hurricane Nicholas to US Gulf crude production faded.
Brent LCOc1 crude ended the session up 21 cents, or 0.3%, at $ 75.67 per barrel. Brent hit $ 76.13 on Wednesday, its highest level since July 30.
Reporting by Elizabeth Dilts Marshall; edited by David Evans, Steve Orlofsky and Sonya Hepinstall
Our standards: Thomson Reuters Trust Principles.