Weak China data jolts markets
new york — Shares were lower in Europe and Asia on Monday, extending the latest losses on Wall Street after China reported a slowdown in exports.
Germany’s DAX lost 0.9 per cent to 10,791.30 and the CAC 4 0 in France fell 1 per cent to 4,734.02. The FTSE 100 in Britain dropped 1 per cent to 6,847.09.
Wall Street stocks fell in early trading on Monday following weak Chinese trade data that underscored concerns about a slowing economy and as earnings season kicked off. About 15 minutes into trading, the Dow Jones Industrial Average stood at 23,857.95, down 0.6 percent. The broad-based S&P 500 shed 0.7 percent to 2,578.80, while the tech-rich Nasdaq Composite Index dropped 1.0 percent to 6,903.26.
In Asia, Hong Kong’s Hang Seng index lost 1.4 per cent to 26,298.33 while the Shanghai Composite fell 0.7 per cent to 2,535.77. The Kospi in South Korea declined 0.5 per cent to 2,064.52 and Australia’s S&P ASX 200 was flat at 5,773.40. India’s Sensex dropped 0.4 per cent to 35,853.56. Shares also fell in Taiwan and Southeast Asia. Japan’s markets were closed for a holiday.
A torrent of turbulent crosscurrents have investors adopting a more defensive approach Stephen Innes, head of trading for the Asia-Pacific at Oanda
China said on Monday that its exports to the US contracted in December although its overall trade surplus with the US hit a record $323 billion in 2018. “Risk has continued to veer averse as pre-earnings jitters amid a torrent of turbulent crosscurrents have investors adopting a more defensive approach even after the Fed indicated patience on further rate hikes,” Stephen Innes of Oanda said in a commentary.
British Prime Minister Theresa May planned to tell lawmakers Monday that she has received further assurances about her Brexit deal from the European Union, in a last-ditch attempt to stave off a crushing defeat for the unpopular agreement.
May was due to make a statement in the House of Commons on the eve of a vote set for Tuesday in Parliament on her EU divorce deal. She contends that defeating the deal could open the way for pro-EU legislators to block Brexit, with “catastrophic” results for Britons’ faith in democracy.