LONDON (Reuters) – Stocks worldwide tumbled on Friday after weak economic data from China and Europe fanned issues of a worldwide economic slowdown and left buyers fretting over the broader affect of a still-unresolved Sino-U.S. commerce dispute.
The MSCI All-Country World Index, which tracks stocks throughout 47 nations, was down over half a p.c by afternoon in Europe. Futures indicated a weak open on Wall Street.
Euro zone enterprise ended the yr on a weak word, increasing on the slowest tempo in over 4 years as new order development all however dried up, damage by commerce tensions and violent protests in France, a survey confirmed.
Another survey confirmed French enterprise exercise plunged unexpectedly into contraction this month, retreating on the quickest tempo in over 4 years within the face of violent anti-government protests.
Germany’s personal sector enlargement slowed to a four-year low, in the meantime, suggesting development in Europe’s largest financial system could also be weak within the last quarter.
The data out of Europe added to weak readings from China, the place November retail gross sales grew on the weakest tempo since 2003 and industrial output rose the least in practically three years, underlining dangers to the financial system as Beijing works to defuse a commerce dispute with the United States.
Stock markets in Europe fell sharply, with Germany’s DAX index falling by as a lot as 1-1/2 p.c. It was final down zero.eight p.c. The pan-European STOXX 600 index was final down zero.eight p.c, after falling over 1 p.c earlier. [.EU]
“The data this morning out of France really hasn’t helped the mood. You look at China data, you look at the flash PMIs out of France and Germany and they’ve really sort of reinforced concerns that the global economy is slowing down,” mentioned Michael Hewson, chief markets analyst at CMC Markets in London.
“Ultimately, I think it rather questions the wisdom of the ECB ending its asset purchase program at the end of this month. You’ve got Mario Draghi basically tightening into a downturn.”
MSCI’s broadest index of Asia-Pacific shares outdoors Japan fell 1.5 p.c. Japan’s Nikkei, additionally dragged down by the nation’s weak tankan sentiment index, dropped 2.zero p.c.
China’s benchmark Shanghai Composite and the blue-chip CSI 300 closed down 1.5 p.c and 1.7 p.c, respectively, and Hong Kong’s Hang Seng was off 1.5 p.c.
A Chinese statistics bureau spokesman mentioned the November data confirmed downward strain on the financial system is rising.
“The market’s softer after Chinese retail sales. They’re still quite stellar growth, they were lower than expected and enough to concern the market,” mentioned Edward Park, funding director at Brooks Macdonald.
The Chinese yuan weakened zero.four p.c to six.9020 per greenback in offshore commerce following the data.
Overnight on Wall Street, the S&P 500 ticked down zero.02 p.c to 2,650, not removed from its 6-1/2-month closing low of two,633 touched on Nov. 23, whereas the Nasdaq Composite dropped zero.39 p.c.
U.S. company earnings due subsequent month may throw a highlight on the affect from the U.S. tariffs on imports from China, whereas there may be danger of a authorities shutdown and additional political stalemate in a divided U.S. congress, Kuramochi added.
In the forex market, the euro was down zero.7 p.c after the weak PMIs, final altering palms at $1.1293.[FRX/]
Sterling fell greater than half a p.c to under $1.26 after Prime Minister Theresa May returned from a go to to Brussels, the place she did not win assurances from European Union leaders over her Brexit withdrawal settlement.[GBP/]
The European Union has mentioned the agreed Brexit deal will not be open for renegotiation despite the fact that its leaders on Thursday gave May assurances that they’d search to agree a brand new pact with Britain by 2021 in order that the contentious Irish “backstop” isn’t triggered.
The greenback stood at 113.61 yen, down zero.1 p.c on the day however above this week’s low of 112.245 set on Monday.
Oil costs fell after China reported slower economic development, pointing to decrease gas demand within the world’s largest oil importer, though market sentiment was supported by provide cuts agreed final week by main crude producers. [O/R]
U.S. crude futures fell zero.7 p.c to $52.22 per barrel and Brent crude slid zero.eight p.c to $60.94, after each gained greater than 2.5 p.c on Thursday.
Cryptocurrency Bitcoin fell as little as $three,200, a recent 15-month low.
A rash of bomb threats have been emailed on Thursday to a whole bunch of companies, public places of work and faculties throughout the United States and Canada demanding fee in cryptocurrency, however not one of the threats appeared credible, legislation enforcement officers mentioned.
Reporting by Ritvik Carvalho; further reporting by Josephine Mason in London and Hideyuki Sano and Tomo Uetake in Tokyo; Editing by Hugh Lawson, Richard Balmforth
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