Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Overnight Markets: US stocks decline on China data

Overnight Markets: US stocks decline on China data

Wall Street fell on Monday, pulling the Standard & Poor’s 500 Index down from a record, weighed down by a slowdown in Chinese exports that fuelled concern about global economic growth.

The Dow Jones industrial average declined 34 points or 0.21%, to 16,419, the S&P 500 lost one point or 0.05%, to 1,877 and the Nasdaq Composite fell two points or 0.04%, to 4,334.

China's exports unexpectedly tumbled 18.1% in February, against expectations for a 6.8% rise, swinging the trade balance into deficit and adding to fears of a slowdown in the world's second-largest economy.

However, the S&P 500 and Nasdaq were saved from bigger losses on merger and acquisition announcements and company specific news including on Facebook and Alexion Pharma.

Boeing Co (BA.N) shares plunged 1.3% on another production setback for the company's newest jet, as "hairline cracks" were discovered in the wings of about forty 787 Dreamliners. The weekend disappearance and presumed crash of a Malaysian airliner made by Boeing was another headwind for the stock.

Freeport McMoRan Copper & Gold (FCX.N) lost 2.5% as signs of a slowing China sent London copper to a more than eight-month low.

Facebook (FB.O) shares hit an intraday record of $72.15 after UBS raised its price target on the online social media giant to $90, from $72. They closed up 3.2%.

Alexion Pharmaceuticals (ALXN.O) jumped 7.1% after it raised its profit and sales forecasts for the year. The French government agreed to raise reimbursement payments for the company's treatment for two rare blood disorders.

Chiquita Brands (CQB.N) and Irish rival Fyffes (FFY.I), Europe's largest distributor, struck an all-stock merger deal to create the world's biggest banana supplier. Chiquita shares jumped 10.7%.

United Rentals Inc (URI.N) gained 3.8%. The world's largest equipment rental company said it agreed to buy privately-held National Pump, the second-largest specialty pump rental company in North America, for $780 million.

In Asia, shares gained on Tuesday in morning trade as investors weighed data showing China’s credit growth trailed estimates in February and awaited the conclusion of the Bank of Japan’s policy meeting.

The MSCI Asia Pacific Index gained 0.4 percent to 138.11 as of 11:11 a.m. in Tokyo. Japan’s Topix index climbed 0.7% before the central bank finishes a two-day meeting today, at which it’s projected to keep its bond-buying program unchanged.

Taiwan’s Taiex index gained 0.4%. Australia’s S&P/ASX 200 Index added 0.1%. New Zealand’s NZX 50 Index fell 0.4%. South Korea’s Kospi Index lost 0.1%. Hong Kong’s Hang Seng Index swung between gains and losses, while the Shanghai Composite Index slipped 0.3%.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play JPM’s Negyal: Back divis to temper EM volatility

JPM’s Negyal: Back divis to temper EM volatility

Omar Negyal, co-manager of the JPMorgan Global Emerging Markets Income trust, says a dividend approach to emerging markets reduces the volatility of investing in the asset class.

Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Your Business: Cover Star Club

Profile: 'new normal' now is as dangerous as when it was applied to tech

Profile: 'new normal' now is as dangerous as when it was applied to tech

7IM's CIO Chris Darbyshire says he has been re-energised by his new role, but has little time for 'new normal' doom-mongers

Wealth Manager on Twitter