Chinese trade data dampens sentiment; stocks decline

Dismal Chinese trade data soured sentiment as the country posted its worst export/import figures since 2016.

Jan 14, 2019 11:01 IST India Infoline News Service

China stock markets down
Stocks fell across Europe and Asia and US equity futures indicated a softer open on dismal trade data from China, the worst since 2016. The data pointed to a worse-than-expected slowdown sparking fresh concerns regarding global growth.

Treasury yields dipped, while the dollar was steady.

Futures on the Dow, Nasdaq and S&P 500 all indicated a weaker open.

Asian markets ended mixed with the Hang Seng leading the Shanghai Composite lower. They declined 1.38% and 0.71%, respectively.

In Europe, data showed that industrial output slowed dragging the euro. The pound was volatile before Tuesday’s crucial vote on Brexit.

European markets are trading broadly lower today, with French stocks leading the decline. The CAC 40 is off 1.03%, London's FTSE 100 is down 1.01%, while Germany's DAX is trading lower by 0.88%.

Global investors wait for a direction as the recent optimism in stocks on the back of trade talk progress between the US and China and the dovish tone from the Federal Reserve officials was offset by Chinese data stressing the very impact of the trade war. Next up on the investor radar are corporate earnings. Meanwhile, the partial US government shutdown continues and is now in its fourth week.

West Texas Intermediate crude fell below $51 a barrel. Gold increased 0.3% to $1,294.15 an ounce, the highest in more than a week.

Key events to watch for this week:
  • Earnings announcements by biggies such as Citigroup, JPMorgan, Bank of America, Wells Fargo, Morgan Stanley and Goldman Sachs.
  • Alcoa, Indian IT company Mindtree, Netflix, Taiwan Semiconductor, American Express and BlackRock will also be on the radar with regard to their result announcements.

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