Global stocks fell Thursday after Chinese export data disappointed and renewed concerns about the health of the world’s second-largest economy.
KEEPING SCORE: Britain’s FTSE 100 was down 0.9 percent to 6,961 and France’s CAC 40 retreated 1.3 percent to 4,394. Germany’s DAX fell 1.2 percent to 10,395. Futures indicated that Wall Street was set for a weak start. Dow and S&P futures both dropped 0.5 percent.
WEAK CHINA TRADE: Data showed that China’s exports last month fell 10 percent from a year earlier in dollar terms, compared with a 2.8 percent fall in August. The drop was wider than analysts’ forecast for a fall of 3.3 percent. Imports also dropped 1.9 percent last month, after a 1.5 percent gain in August, due to lower shipments of key commodities such as iron ore and copper.
ANALYST’S TAKE: “China’s exports weakened last month on the back of subdued external demand. At the same time, import growth returned to negative territory, raising questions over the strength of the recent recovery in domestic demand,” said Julian Evans-Pritchard, an economist at Capital Economics. “This could be an early sign that the recent recovery in economic activity is losing momentum.”
ASIA’S DAY: Asian markets finished lower. Japan’s Nikkei 225 lost 0.4 percent to 16,774.24, while South Korea’s Kospi fell 0.9 percent to 2,015.44. Hong Kong’s Hang Seng index retreated 1.6 percent to 23,031.30 and the Shanghai Composite Index added 0.1 percent to 3,061.35. Stocks in Australia, Taiwan and Southeast Asia also declined. Thai’s benchmark sank 2.4 percent upon the news that its revered, long-time king has died.
OIL: Benchmark U.S. crude oil rose 11 cents to $50.29 per barrel in New York. The contract closed 61 cents lower on Wednesday. Brent crude, the international standard, gained 15 cents to $51.96 a barrel in London.
CURRENCIES: The dollar fell to 103.77 yen from 104.29 yen. The euro weakened to $1.1037 from $1.1014.
BEFORE YOU GO…
… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.
If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.Click for more info