US stocks slip on Chinese data and falling oil prices
US stocks fell on Friday, with shares of technology, energy and industrial companies bearing the brunt of a selloff, as weak Chinese data and declines in oil prices raised concerns about global growth.
As investors shunned growth stocks, the S&P technology index fell 1.6 percent, led by losses in Apple Inc and chipmaker Skyworks Solutions Inc, which fell 8.8 percent after weak forecast.
The S&P energy index shed 1.8 percent as US crude price entered “bear market” territory, falling more than 20 percent since early October and below $60 a barrel. Oil majors Exxon Mobil Corp and Chevron Corp fell more than 1 percent, while a drop in price of copper, considered an economic bellwether, led to a 4.4 percent loss in miner Freeport McMoran Inc.
Amid a bitter trade dispute between the Washington and Beijing, Chinese data showed producer inflation fell for the fourth straight month in October on cooling domestic demand and manufacturing activity.
The China report sent global stocks into a tailspin, with trade-sensitive stocks such as Boeing Co and Caterpillar Inc sliding 1 percent and 3.3 percent, respectively.
The Dow Jones Industrial Average was down 151.20 points, or 0.58 percent, at 26,040.02, the S&P 500 was down 20.80 points, or 0.74 percent, at 2,786.03 and the Nasdaq Composite was down 82.86 points, or 1.10 percent, at 7,448.02. Nine of the 11 major S&P sectors were lower, with slight gains seen in the defensive real estate and consumer staples indexes. General Electric fell 4.8 percent after J.P. Morgan cut price target on the stock to $6 from $10. Walt Disney Co, a member of the Dow Jones Industrial Average, rose about 3 percent after good company report
European markets plunge
European shares slipped on Friday as mining and oil stocks sold off and weak results from Thyssenkrupp and Richemont weighed on sentiment.
The pan-European STOXX 600 fell 0.4 percent but held on to a small gain for the week, its second in the black after a harsh sell-off in October.
The end-week slide in Europe joined a global market retreat after the US Federal Reserve appeared to remain on track to raise its key interest rate next month and warned the growth of business investment had dipped.
On Friday disappointing corporate earnings in Europe weighed on the market, as Germany’s Thyssenkrupp fell 9.2 percent to its lowest levels since July 2016 after cutting its profit outlook for the second time this year.
Thyssenkrupp helped drag down the basic resources sector .SXPP which fell 3.4 percent as metals sold off.
Nickel slumped to its lowest price in nearly 11 months on worries about higher US interest rates and slowing Chinese economic growth.
French oil storage and distribution group Rubis led losers with an 11 percent fall after a disappointing trading update, and brokers lowered their recommendation for the stock.
The energy sector also acted as a drag, down 1.4 percent with oil majors weighing on indexes as rising supply and concerns of an economic slowdown pressured prices.
Another blow for investors was luxury goods group Richemont, whose shares fell 6.4 percent after it said sales growth slowed and management struck a cautious note.
Britain’s top share index dips
UK shares fell on Friday, ending two days of gains as weak metals prices weighed, Burberry sank 5 percent and Wall Street opened lower after a hawkish Federal Reserve statement renewed worries about an imminent interest rate hike.
The FTSE 100 closed down 0.5 percent as negative sentiment on Wall Street and in Asia spilled over across European bourses, while the domestically focussed mid-cap index was 0.8 percent lower, also dragged lower by a weaker sterling.
The blue-chip index notched up small gains on the week as it continued to recoup ground lost in October. The FTSE 250 was down 1.1 percent for the week.
China and Hong Kong shares down
China stocks fell over 1 percent on Friday and were headed for a fifth straight session of losses, dragged by financials after the banking and insurance regulator pushed for credit support to private companies. Hong Kong stocks also declined, tracking broader Asian markets, as investors braced for an interest rate hike by the US Federal Reserve in December.
The Shanghai Composite index was down 1.3 percent at 2,601.51. The blue-chip CSI300 index also lost 1.3 percent.
CSI300’s consumer staples sector sub-index was down 0.7 percent, the real estate index lost 0.88 percent and the healthcare sub-index was lower by 0.86 percent.
The smaller Shenzhen index was down 0.4 percent and the start-up board ChiNext Composite index was weaker by 0.3 percent.
Tracking losses in broader Asian markets, Hong Kong stocks fared worse than those in the mainland. The Hang Seng Index was down 2.4 percent at 25,601.15. Chinese H-shares listed in Hong Kong fell 2.7 percent to 10,419.5. Around the region, MSCI’s Asia ex-Japan stock index was weaker by 1.5 percent, while Japan’s Nikkei index was down 0.9 percent, after the Fed’s statement overnight showed that the central bank appeared poised to deliver another interest rate hike next month.
Tokyo’s Nikkei index falls more than 1pc
Tokyo’s benchmark Nikkei index lost more than 1.0 per cent on Friday as investors locked in profits following the previous day’s rally.
The Nikkei 225 index fell 1.05 per cent or 236.67 points to 22,250.25. Over the week, it edged up 0.03 per cent in volatile trade. The broader Topix index was down 0.49 per cent or 8.27 points at 1,672.98, but rose 0.85 per cent from a week earlier. Investors cashed in after the Nikkei index jumped more than 1.8 per cent on Thursday, while a decline in Chinese shares added extra selling pressure, brokers said.
India Sensex drops 79 points
The benchmark indices ended slightly lower on Friday led by a fall in information technology (IT) and metal stocks. The S&P BSE Sensex ended at 35,159, down 79 points, while the broader Nifty50 index settled at 10,585, down 13 points.
Among the sectoral indices, the Nifty IT index fell 0.8 per cent weighed by Infosys and Tata Consultancy Services (TCS). The Nifty Metal index slipped 0.9 per cent due to a decline in NMDC. On the other hand, the Nifty Pharma index settled 1.4 per cent higher led by a rise in Sun Pharma. In stock-specific action, Bharti Airtel fell 2.9 per cent to Rs 297 on the BSE after Moody’s Investors Service placed it’s rating on review for downgrade, following low levels of profitability and expectation of weak cash flow. The stock had fallen as much as 5.21 per cent to Rs 290 on the BSE in intra-day trade.