Global Stocks Lower on China Worries 10/13 06:43
Global stock markets were lower Tuesday as Chinese trade data showed a
larger-than-expected slide in imports, deepening concerns about a slowdown in
the world's second-largest economy.
SEOUL, South Korea (AP) -- Global stock markets were lower Tuesday as
Chinese trade data showed a larger-than-expected slide in imports, deepening
concerns about a slowdown in the world's second-largest economy.
KEEPING SCORE: Europe opened sharply lower with Britain's FTSE 100 down 0.8
percent at 6,318.62 and Germany's DAX sliding 1.4 percent to 9,982.98. France's
CAC 40 dropped 1.7 percent to 4,610.78. Wall Street appeared set for losses
with Dow futures down 0.5 percent and S&P futures 0.7 percent lower.
ASIA'S DAY: Japan's Nikkei 225 fell 1.1 percent to 18,234.74 and South
Korea's Kospi was down 0.1 percent at 2,019.05. China's Shanghai composite
index finished 0.2 percent higher at 3,293.23 after trading lower, while Hong
Kong's Hang Seng index shed 0.6 percent to 22,600.46. Australia's S&P/ASX 200
dropped 0.6 percent to 5,202.90. Stocks in Southeast Asia were also lower.
CHINA SLOWDOWN: China's September imports fell by an unexpectedly wide
margin of 20.4 percent from a year ago in a new sign of weakness in the world's
second-largest economy, while exports also contracted, although by less than
predicted. Customs data released Tuesday showed Chinese purchases of foreign
goods worsened from August's 5.5 percent decline, evidence of anemic demand
despite repeated stimulus efforts aimed at reversing a decline in economic
growth. Sales of Chinese goods to foreign markets fell 3.7 percent, an
improvement from the previous month's 13.8 percent contraction.
ANALYST'S TAKE: "Markets and currencies started to weaken from the open as
nervousness about the Chinese trade data was heavy in the air," said Angus
Nicholson, a market analyst at IG. "It was basically a fairly mixed report, but
with last week's impressive rally starting to look stretched, mixed Chinese
data was taken as bad Chinese data."
ENERGY: Benchmark U.S. crude fell 29 cents to $46.80 per barrel in
electronic trading on the New York Mercantile Exchange. On Monday, the contract
dropped $2.53 to close at $47.10 a barrel after a report showed that OPEC
members are keeping up production even after a big drop in prices. Brent crude,
used to price international oils, lost 22 cents to $50.02 per barrel in London.
CURRENCIES: The euro strengthened to $1.138 from $1.136, while the dollar
weakened to 119.72 yen from 120.04 yen.