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U.S. stocks declined as weak Chinese trade data spurred concerns about slowing global growth. Treasuries rose and the dollar dropped.
The S&P 500 fell after rising for a third straight week Friday, led by technology shares after slumping Chinese exports fueled worries about the growing impact of the U.S.-China trade war on worldwide growth. PG&E plunged after the utility said it will file for bankruptcy in California and its chief executive officer will exit. Citigroup advanced after reporting earnings, helping to lift banks.
The 10-year Treasury yield dropped for a second session, while the dollar fell against most peers. In Europe, the Stoxx Europe 600 Index snapped four days of gains, dragged lower by technology companies. The euro was steady after data showed industrial output slowed, while the pound edged higher before Tuesday’s crucial vote on Brexit.
This month’s buoyancy in global equities, triggered by signs of progress in U.S.-China trade talks and dovish commentary from Federal Reserve officials, faces a test with the Chinese data underscoring the impact of the trade spat. The next hurdles to clear will be a slew of U.S. bank profit reports and earnings season, amid worries global growth is slowing. Also weighing on sentiment is the partial U.S government shutdown that’s entered its fourth week.
Elsewhere, West Texas Intermediate crude pared an early loss to trade above $51 a barrel. Emerging market currencies and shares dipped. Japan was closed for a holiday.
Terminal users can read our Markets Live blog.
Here are some important events coming up:
- Some of the world’s biggest banks announce earnings, including JPMorgan, Bank of America, Wells Fargo, Morgan Stanley and Goldman Sachs. Alcoa, Indian IT company Mindtree, Netflix, Taiwan Semiconductor, American Express and BlackRock also post results.
These are the main moves in markets:
- The S&P 500 Index declined 0.5 percent as of 10:11 a.m. New York time.
- The Stoxx Europe 600 Index fell 0.6 percent, the first retreat in a week.
- The MSCI All-Country World Index decreased 0.3 percent, the first retreat in more than a week.
- The MSCI Emerging Market Index sank 0.9 percent, the biggest dip in more than a week.
- The Bloomberg Dollar Spot Index decreased 0.2 percent.
- The euro was steady at $1.1471.
- The Japanese yen rose 0.3 percent to 108.21 per dollar.
- The British pound gained 0.1 percent at $1.2853.
- The MSCI Emerging Markets Currency Index sank 0.2 percent.
- The yield on 10-year Treasuries decreased one basis point to 2.69 percent, the lowest in more than a week.
- Germany’s 10-year yield decreased two basis points to 0.21 percent, the lowest in more than a week.
- Britain’s 10-year yield decreased three basis points to 1.257 percent, the lowest in more than a week.
- The Bloomberg Commodity Index rose 0.5 percent.
- West Texas Intermediate crude fell 0.1 percent to $51.54 a barrel.
- Gold increased 0.2 percent to $1,291.50 an ounce.