China pulls down stocks, treasuries grow
January 14, 2019 @ 12:41 UTC
Stocks dropped in Europe and Asia, with U.S. equity futures also declining as China trade data showed a worse-than-expected slump, reigniting concerns about global growth. Treasury yields slipped and the dollar held steady. Technology companies and miners were among the biggest decliners in the Stoxx Europe 600 Index, with futures on the Dow, Nasdaq and S&P 500 all pointing to a weaker open. In Asia, losses were most pronounced in Hong Kong after China posted the worst import and export figures since 2016. The yuan held on to recent gains as Goldman Sachs Group Inc. lifted its forecast for the currency. The pound was steady before Tuesday’s crucial vote on Brexit, with U.K. Prime Minister Theresa May appearing no closer to getting the backing she needs.
This month’s buoyancy in global equities, triggered by signs of progress in U.S.-China trade talks and dovish commentary from Federal Reserve officials, faces a test with the Chinese data underscoring the impact of the trade spat. The next hurdles to clear will be a slew of U.S. bank profit reports and earnings season, amid worries global growth is slowing. Also weighing on sentiment is the partial U.S government shutdown that’s entered its fourth week.
Futures on the S&P 500 Index declined 0.8 percent as of 8:02 a.m. London time, the first retreat in more than a week. The Stoxx Europe 600 Index fell 0.5 percent, the first retreat in a week and the biggest fall in more than a week. The MSCI All-Country World Index decreased 0.2 percent, the first retreat in more than a week. The MSCI Emerging Market Index sank 1.1 percent, the biggest tumble in a month.
Stocks Fall as China Data Sours, Treasuries Climb, Bloomberg, Jan 14