Wall St. Declines Further, Burdened by Oil Prices
United States markets opened lower on Friday after more signs of weakness in China and another slide in oil prices.
Energy and materials stocks led the declines in early trading, with United Technologies losing the most in the Dow Jones industrial average.
KEEPING SCORE The Dow Jones industrial average fell 0.4 percent and the Standard & Poor's 500-stock index was down 0.43 percent. The Nasdaq composite index dropped 0.36 percent.
EUROPEAN MARKETS In Germany, the DAX fell 1.1 percent and in France, the CAC 40 lost 1.4 percent. The FTSE 100 was down 1.3 percent in Britain.
CHINA DATA China was a source of concern in markets after figures showed factory output growth declined to 7.2 percent in November from 7.7 percent growth in October. The data came after Chinese leaders at an annual planning meeting affirmed their commitment to the 'new normal' of slower growth as they try to steer China toward a more sustainable expansion based on domestic consumption.
OIL WEIGHS Uncertainty over oil prices was another factor weighing on markets, especially after the International Energy Agency said global oil demand in 2015 would grow by 900,000 barrels a day, 230,000 less than previously forecast, to 93.3 million.
After the agency's report, the benchmark New York oil price slipped further below $60 a barrel to fresh five-year lows. In New York, the price of crude was down $1.23, at $58.72 a barrel. Brent, the international standard, was 74 cents lower at $62.94 a barrel.
The agency also dampened expectations that the fall in oil prices would automatically be a boon for the global economy. 'The adverse impact of the oil price rout on oil-exporting economies looks likely to offset, if not exceed, the stimulus it could provide for oil-importing countries against a backdrop of weak economic growth and low inflation,' the agency said.
ANALYST'S TAKE 'The sell-off in equity markets shows no sign of abating, and the risk-off mentality looks to be firmly embedded in traders' minds,' said Alastair McCaig, a market analyst at IG.
ASIA'S DAY The Nikkei 225 rose 0.7 percent in Japan, while in Hong Kong, the Hang Seng closed down 0.3 percent. The Shanghai Composite Index added 0.4 percent in China. The Kospi was up 0.2 percent in South Korea. Stocks in Southeast Asia also rose but Australia's S.&P./ASX 200 fell 0.2 percent.
CURRENCIES AND BONDS The dollar gave up some recent ground, with the euro up 0.4 percent at $1.2450. The dollar was also 0.3 percent lower at 118.50 yen. Bond prices rose. The yield on the 10-year Treasury note fell to 2.12 percent.
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