Data from China added to the downward pressure, showing factory-gate inflation slowed for the fourth month in October on cooling domestic demand and manufacturing activity. — Reuters pic
NEW YORK, Nov 10 — Stocks around the globe suffered their biggest drop in two weeks yesterday as weak Chinese economic data sapped demand for equities while oil prices weakened again.
US stocks were broadly lower, with energy shares falling more than 1 per cent as benchmark Brent crude oil saw a six-month low and US crude fell below US$60 (RM250) for the first time since March.
Data from China added to the downward pressure, showing factory-gate inflation slowed for the fourth month in October on cooling domestic demand and manufacturing activity.
Bad debts at Chinese brokers and banks are also causing concern.
In the US, producer prices rose more than expected in October and at their fastest pace in six years, but measures of underlying price pressure cooled, bolstering the view that the US central bank is not facing a resurgence in inflation.
European shares dipped as mining and oil stocks sold off, but they managed to end the week with a small gain.
“Oil is spooking the market. If oil prices are going to go lower that’s another sign that the global economy is going to slow its growth,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance in Charlotte, North Carolina. “It looks like a slow (stocks) sell off. All day long it’s been drifting lower.”
The Dow Jones Industrial Average fell 201.92 points, or 0.77 per cent, to 25,989.3, the S&P 500 lost 25.82 points, or 0.92 per cent, to 2,781.01 and the Nasdaq Composite dropped 123.98 points, or 1.65 per cent, to 7,406.90.
Equities snapped a streak of seven straight days of gains on Thursday after