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Title: SHINA, SHINA, SHINA - U.S. Stock Futures Point to More Losses
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URL Source: http://www.foxbusiness.com/markets/ ... rom-chinese-data/?intcmp=hpbt1
Published: Aug 21, 2015
Author: FOX
Post Date: 2015-08-21 09:10:05 by HAPPY2BME-4UM
Keywords: CHINA, MELTDOWN, STOCK MARKET, DOW JONES
Views: 29
Comments: 2
U.S. stocks were poised for a slightly lower open Friday, rounding out a week marked by fears about a cooling Chinese economy. Investors on Friday received fresh evidence of the slowdown in the world's second-largest economy. An early gauge of China's factory activity slumped to a six-and-a-half year low in August, triggering steep declines in stocks across Asia and Europe, where many companies depend on China for demand. U.S. stock futures indicated a 0.2% opening loss for the S&P 500 and a 0.4% opening loss for the Dow Jones Industrial Average. Changes in futures aren't necessarily reflected in market moves after the opening bell. Declines in European stocks were bigger. France's CAC-40 lost 1.1% and Germany's DAX slipped 1%. U.S. stocks fell sharply on Thursday, with the Dow tumbling nearly 360 points to its lowest level since October. The downbeat tone to stocks continues to be driven by "the uncertainty and speculation about the pace of global growth and what might the Fed do in September," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. Minutes from the latest Federal Reserve meeting showed officials remain divided on whether to raise rates next month. Mr. Sandven noted that the renewed Chinese growth scare came as U.S. companies have largely finished reporting second-quarter earnings, giving investors little else to focus on. Including results from 484 companies in the S&P 500, earnings are on track to slip 0.6% in the second quarter, according to FactSet. Hewlett-Packard Co. reported a 13% drop in quarterly profit. Revenue fell 8%, marking the 15th decline in the past 16 quarters. The results were H-P's last before its planned breakup on Nov. 1. Shares lost 0.2% premarket. Foot Locker Inc. posted a better-than-expected 29% jump in profit amid broad-based sales growth. Shares rose 2% premarket. In commodity markets, gold futures were nearly flat at $1153.20 an ounce. Crude-oil futures fell 0.9% to $40.97 a barrel. Treasury prices were little changed, with the 10-year yield at 2.082% versus 2.084% on Thursday.
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A global stock rout intensified Friday on fresh worries about the health of China’s economy. Signs of a sharp slowdown in the world’s second-largest economy have unnerved investors since Beijing surprised markets last week by devaluing its currency. Shares in the U.S., Asia and Europe have tumbled along with commodity prices as investors worry about waning Chinese demand. On Friday, an early gauge of China’s factory activity fell to a six-and-a-half year low in August, heaping further pressure on stocks and commodities after Thursday’s global selloff. “It becomes ever more evident that China’s economy is cooling off,” said Jeroen Blokland, a portfolio manager at Robeco, which manages $307 billion of assets. U.S. stock futures indicated a 0.4% opening loss for the S&P 500 and a 0.6% decline for the Dow Industrials, which sank to its lowest level since October on Thursday. Changes in futures aren’t necessarily reflected in market moves after the opening bell. The pan-European Stoxx Europe 600 was 1.6% lower early afternoon, on course for its biggest weekly loss since December. The index has now lost more than 10% since its April peak, entering a so-called correction. Earlier, the Shanghai Composite Index tumbled 4.3%, hitting its lowest level since March, despite Beijing’s efforts to prop up the market in recent weeks. In Japan, the Nikkei fell 2.6% to a six-week low. Some investors and analysts say they think the tumult in markets could complicate the Federal Reserve’s plans to raise interest rates. “The Chinese have created an air of fragility around the globe. Markets will now surely have to firm up considerably for the Fed to pull the trigger next month,” said Deutsche Bank analyst Jim Reid. Ultralow interest rates have fueled a big rally in stock markets since the financial crisis. On Wednesday, minutes of the Fed’s latest policy meeting showed officials were divided over when to raise rates, with some citing concerns over China’s economy as a reason to hold back. But a delay in lifting rates may bring little comfort to investors if slowing global growth is behind the Fed’s caution. Paul O’Connor, a senior fund manager at Henderson Global Investors, which manages £82 billion ($129 billion) in assets, said he has been selling stocks and buying bonds in recent months, fearing further spillover from the recent Chinese selloff. “Is there a buying opportunity in stuff that has got beaten up, or will it start to erode confidence in developed market assets? We’re in the latter camp,” he said. Data from Bank of America Merrill Lynch published Friday shows that global equities suffered $8.3 billion of outflows in the week ending Thursday, representing the worst week in almost four months. Losses were particularly heavy in the emerging markets and in the U.S. The recent rout in commodity markets continued Friday as fears over waning Chinese demand intensified. Oil prices extended their recent declines. Brent crude oil fell 1.5% to $45.90 a barrel, its lowest level since January. Industrial metals prices also fell as the Chinese data reignited worries about the future pace of demand from the world’s top consumer. “Commodity markets are telling us this is quite serious,” said Neil Dwane, head of European equities at which oversees €412 billion ($463 billion) of assets. —Chiara Albanese, Christopher Whittall and Ese Erheriene contributed to this article. U.S. Constitution - Article IV, Section 4: NO BORDERS + NO LAWS = NO COUNTRY
Frontrunning: August 21Submitted by Tyler Durden on 08/21/2015 - 07:49 U.S. Constitution - Article IV, Section 4: NO BORDERS + NO LAWS = NO COUNTRY
Global Stocks Fall Further on China Worries
Signs of a sharp slowdown in the world’s second-largest economy worry investors
ENLARGE An investor walks past monitors showing stock market movements at a brokerage house in Shanghai. Signs of a sharp slowdown in China, the world’s second-largest economy, have rattled markets. Photo: Agence France-Presse/Getty Images
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