Wall St. Closes Sharply Lower in Late Sell
United States stocks were lower in early trading Monday after their worst week in more than two years. Markets were higher in Europe, while Asian stocks fell despite the release of robust Chinese trade figures. Over all, investor sentiment remains fragile amid concerns about the global economic outlook.
KEEPING SCORE The Standard & Poor's 500-stock index fell 0.2 percent in early trading, and the Dow Jones industrial average was 0.1 percent lower. The Nasdaq composite fell 0.4 percent. Last week American stocks swung wildly and ended lower because of renewed fears of a slowdown in European economies. The S.&P. 500 fell 3.1 percent, its worst weekly performance since a 4.3 percent decline in May 2012.
EUROPEAN MARKETS France's CAC 40 was up 0.3 percent at 4,086.32 and Germany's DAX rose 0.4 percent to 8,826.35. Britain's FTSE 100 edged up 0.1 percent to 6,344.96.
ASIA'S DAY Trading had been weaker in Asia earlier. China's Shanghai Composite fell 0.4 percent to 2,366.01, though Hong Kong's Hang Seng added 0.2 percent to 23,143.38. South Korea's Kospi dropped 0.7 percent to 1,927.21 Australia's S&P/ASX 200 declined 0.6 percent to 5,155.50. Markets in Southeast Asia and New Zealand also dropped. Stock markets in Japan were closed for a holiday.
GLOBAL OUTLOOK The main factor weighing on stocks since last week has been concern over global growth. The International Monetary Fund last week trimmed its global forecasts for this year and next, citing weakness in Japan, Latin America and Europe. The global economy will expand 3.3 percent this year instead of 3.4 percent and expand 3.8 percent in 2015. The IMF said recovery is 'weak and uneven' in the advanced economies. Disappointing economic indicators from Germany also suggested Europe's recovery is likely to be even weaker than expected.
CHINA TRADE Traders found some solace in upbeat Chinese trade figures for September, which showed an acceleration in exports growth and a pickup in imports. The Customs Administration said Monday that exports rose 15.2 percent from the same month last year, while imports were up 6.9 percent. Exports grew 9.4 percent in August while imports shrank for a second month in a row. Analysts cautioned, however, that the improvement in imports was driven by demand for components used in export manufacturing rather than a robust domestic economy.
LOOKING AHEAD Investors are likely to look out for more corporate earnings in the U.S. this week, including banks like Citigroup Inc. on Tuesday, Bank of America Corp. on Wednesday and Goldman Sachs on Thursday. Google Inc. will release on Thursday and General Electric Co. is due Friday.
Among U.S. economic indicators, traders will be watching out for retail sales and industrial production on Wednesday and Thursday.
ENERGY AND CURRENCIES Benchmark U.S. crude dropped $1.17 to $84.65 per barrel. On Friday, the contract inched up 5 cents to $85.82. Meanwhile, the dollar fell to 107.39 yen from 107.65 yen late Friday. The euro rose to $1.2683 from $1.2626.
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