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US stocks waver as weak China data compound growth concerns

Wall Street stock indices rose on Monday by inches despite weak economic data from China that put further pressure on the global economic forecast.

The S&P 500 recovered from an early decline and traded up 0.3% in mid-afternoon trading, thanks to solid gains in energy and health stocks. However, the heavier Nasdaq Composite in technology remained down 0.4 percent.

Global stocks are immersed in them The longest line of weekly losses Since the financial crisis of 2008, despite a strong jump in the previous session.

The FTSE All World stock index has fallen nearly 12% since the end of March, when rising inflation led central banks to raise interest rates, with investors starting to worry that large economies are not strong enough to afford higher credit costs. The All-World, S&P and Nasdaq Composite all closed down for six consecutive weeks.

“It’s a pretty ugly combination of financial conditions that are tightening to a slowdown in growth,” added Hani Rada, portfolio manager for multi-asset investments at PineBridge Investments. “There are more declines in profit growth that the market has not yet priced. We are closer to the bottom but there is much more to come.”

However, the downward trend has been interrupted by short-term gains, with traders debating whether a gloomy economic outlook is now fully priced for the financial markets.

“A large part of the global economy is actually shrinking,” said Luca Paulini, chief strategist at Pictet Asset Management. “but [stock market] “Valuations look more attractive, so there are always people who will say that the worst is behind us, let’s buy the market back.”

data On Monday, retail sales in China fell 11.1 percent in April from the same month last year, as a wave of aggravated corona virus locks across the country reduced demand. Industrial production, which analysts expected to rise slightly, fell 2.9%.

Brussels later Cut his growth forecasts Further for the euro area and raised its inflation forecast to reflect the economic impact of higher energy costs incurred as a result of Russia’s invasion of Ukraine.

Meanwhile, Lloyd Blankfein, senior chairman of Goldman Sachs, told CBS News on Sunday that there is a “very, very high risk” of a U.S. recession. The largest economy in the world Shrinked unexpectedly In the first quarter of the year. Consumer price inflation is also approaching a four-decade high.

The US Federal Reserve raised its primary fundraising cost by 0.5 percentage points this month, while Chairman Jay Powell said Moves of the same size “should be on the table in the next two sessions”.

President of the European Central Bank, Christine Legard sign Last week that the institution was willing to stop its long-standing policy of keeping interest rates in the currency block below zero.

The regional stock index Stoxx Europe 600 closed unchanged on Monday, while the London FTSE 100 index rose 0.6 percent.

In Asia, China’s CSI 300 stock fell 0.8%, while Hong Kong’s Hang Seng added 0.3%.

In government bond markets, meanwhile, the 10-year US Treasury bill yield – considered a measure of global credit costs – fell 0.03 percentage points to 2.89%. Bond yields fall as their prices rise.

Brent crude rose 2.7 percent to $ 114.51.

US stocks waver as weak China data compound growth concerns Source link US stocks waver as weak China data compound growth concerns

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