World Stocks Mostly Lower on Monday 10/18 05:20
World shares were mostly lower on Monday after China reported its economy
grew at a meager 4.9% annual pace in July-September.
(AP) -- World shares were mostly lower on Monday after China reported its
economy grew at a meager 4.9% annual pace in July-September.
Germany's DAX declined 0.5% to 15,506.11 and the CAC 40 in Paris gave up
0.8% to 6,676.21. Britain's FTSE 100 lost 0.2% to 7,216.79.
The future for the Dow industrials was 0.2% lower while the future for the
S&P 500 lost 0.3%.
The Shanghai Composite index inched 0.1% lower to 3,568.14, while the Hang
Seng in Hong Kong recovered from earlier losses, gaining 0.3% to 25,409.75.
Chinese growth is under pressure as the government seeks to limit energy use
and reduce financial risks from reliance on debt-fueled property developments.
Shortages of computer chips and other components due to the pandemic are
The 4.9% annual pace of growth was slightly below forecasts and compared
with a 7.9% expansion in the April-June quarter, which was exaggerated by the
downturn in 2020.
"The growth outlook has weakened due to the various headwinds," Tommy Wu and
Louis Kuijs of Oxford Economics said in a report. They forecast that growth
would "slow significantly" in the current quarter.
New Zealand's benchmark edged 0.1% lower after figures showed prices jumped
4.9% in July-September from a year earlier. It was the fastest pace of
inflation since early 2011.
The figures add to pressure on New Zealand's central bank to keep hiking
rates after it raised the benchmark rate earlier this month for the first time
in seven years by a quarter point to 0.5%.
Investors remain uneasy that price increases in many countries could lead to
"stagflation," or a stagnating economy coupled with high inflation.
Other regional shares also fell. Tokyo's Nikkei 225 index gave up 0.2% to
29,025.46. In Seoul, the Kospi lost 0.3% to 3,006.68.
The S&P/ASX 200 in Sydney rose 0.3% to 7,381.10. India's benchmark rose 0.9%
On Friday, Wall Street added to its recent gains, with the benchmark S&P 500
posting its best week since July.
The S&P 500 rose 0.7%, while the Dow Jones Industrial Average rose 1.1% and
the Nasdaq composite gained 0.5%.
Positive company earnings dovetailed with a report showing people spent much
more at U.S. retailers in September than analysts had expected.
The S&P 500 is back within 1.5% of its all-time high after a shaky few weeks
as worries about stubbornly high inflation, reduced support for markets from
the Federal Reserve and a slowing economy knocked stock prices around.
Early indicators from earnings reports have been encouraging, with companies
showing stronger profits than expected. That's crucial after climbing interest
rates raised worries that stock prices had grown too expensive relative to
Treasury yields rose following the much stronger-than-expected report on
retail sales. The yield on the 10-year note climbed to 1.60% early Monday from
1.57% late Friday.
The price of benchmark U.S. oil rose 90 cents to $83.18 per barrel in
electronic trading on the New York Mercantile Exchange. It surged 1.2% to
$82.28 per barrel on Friday, continuing a powerful run that has sent it up more
than 70% this year and fanned worries about high inflation.
Brent, the global benchmark for crude, climbed advanced 59 cents to $85.45
per barrel. It jumped 1% on Friday, though the price of U.S. natural gas fell
The U.S. dollar rose to 114.32 Japanese yen from 114.22 yen late Friday. The
euro fell to $1.1584 from $1.1602.