Analysis

US stocks fall on renewed global growth concerns

Dollar slips as home sales decline

US stock market snapped 4-session winning streak on negative implications of slower China’s growth data to global growth outlook. The S&P 500 fell 1.4% to 2632.90. Dow Jones lost 1.2% to 24404.48. The Nasdaq dropped 1.9% to 7020.36. The dollar weakening continued as data showed existing home sales declined in December. The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, slipped 0.01% to 96.287 but is higher currently. Futures on three main US stock indices point to mixed openings.

FTSE 100 underperforms other European indexes

European stocks extended losses on Tuesday on persisting global growth worries after China reported slower growth for 2018. The EUR/USD turned lower while GBP/USD rose with both pairs higher currently. The Stoxx Europe 600 lost 0.4%. The German DAX 30 fell 0.4% to 11090.11, France’s CAC 40 slid 0.4% and UK’s FTSE 100dropped 1.0% to 6901.39.

Chinese stocks rise while Asian indices slip

Asian stock indices are mixed today after President Xi Jinping told high-level Communist Party officials to be alert over “black swan” and “gray rhino” financial events in face of an economic slowdown at a meeting after China posted its slowest annual growth since 1990 - 6.6%. Nikkei slipped 0.1% to 20593.72 while yen resumed its slide against the dollar as Japan reported weak export data. Chinese stocks are higher supported by Beijing pledge to step up fiscal spending this year to support its economy: the Shanghai Composite Index is up 0.1%, and Hong Kong’s Hang Seng index is 0.1% higher. Australia’s All Ordinaries Index extended losses 0.3% as the Australian dollar resumed climbing against the greenback.

Brent up

Brent futures prices are recovering today. Prices ended lower yesterday: March Brent fell 2% to $61.50 a barrel on Tuesday.


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