Slump in oil prices and China data weighs on stocks

NEW YORK (Reuters) – Stocks around the globe suffered their biggest drop in two weeks on Friday as weak Chinese economic data sapped demand for equities while oil prices weakened again on Friday.

A trader works on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., November 9, 2018. REUTERS/Andrew Kelly

U.S. stocks were broadly lower, with energy shares .SPNY falling more than 1.0 percent as benchmark Brent crude oil saw a six-month low and U.S. crude fell below $60 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 U.S., 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 U.S. 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 its been drifting lower.”

The Dow Jones Industrial Average .DJI fell 201.92 points, or 0.77 percent, to 25,989.3, the S&P 500 .SPX lost 25.82 points, or 0.92 percent, to 2,781.01 and the Nasdaq Composite .IXIC dropped 123.98 points, or 1.65 percent, to 7,406.90.

Equities snapped a streak of seven straight days of gains on Thursday

Read More Here...

Bookmark the permalink.