Oil price fall, China data weighs on global stocks

Galtero Lara
Noviembre 12, 2018

In the US, producer prices rose more than expected in October and at their fastest pace in six years, but measures of underlying price pressure cooled, bolstering the view that the USA central bank is not facing a resurgence in inflation.

Wall Street's three major stock indexes lost ground on Friday, after a week of recovery from the October sell-off, as oil prices fell further and more evidence of a slowing Chinese economy was reported.

Activision Blizzard Inc was down 13.2 percent after the video game publisher gave a dismal fourth-quarter forecast.

The benchmark S&P 500 index posted 29 new 52-week highs and 8 new lows; the Nasdaq Composite recorded 46 new highs and 113 new lows.

"When you look overseas, there's not just concerns about a global slowdown, but a global recession that might be brewing", said Jerry Braakman, chief investment officer of Santa Ana, California-based First American Trust.

Oil majors Exxon Mobil Corp and Chevron Corp fell more than 1 per cent, while a drop in price of copper, considered an economic bellwether, led to a 4.4 per cent loss in miner Freeport McMoran Inc.

The S&P 500 index fell 30 points, or 1.1 percent to 2,776.

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If West Texas Intermediate crude for December delivery on the New York Mercantile Exchange CLZ8, -1.04% ends lower on Friday, it will mark its 10th consecutive decline and that would match the longest skid for the contract since a similar stretch from July 18-July 31 1984, according to Dow Jones Market Data.

The Federal Reserve decision disappointed some investors who had hoped that the sharp share price falls during what has been called "Red October" might have encouraged the USA central bank to take a more dovish approach toward monetary policy.

U.S. stocks fell today, with shares of technology, energy and industrial companies bearing the brunt of a selloff, as weak Chinese data and declines in oil prices raised concerns about global growth.

The S&P technology index .SPLRCT fell 1.9 percent as Apple Inc dropped 2.4 percent and semiconductor stocks .SOX tumbled 2.1 percent.

Walt Disney rose 3 percent after its profit surpassed analyst estimates thanks to strong studio entertainment revenue. Shortly after the opening bell the Dow Jones index was off 0.6 per cent while mid-session London's benchmark FTSE 100 index and Paris had both retreated 0.6pc, as markets waited also on a Brexit deal to smooth Britain's bumpy exit from the European Union.

Declining issues outnumbered advancers for a 2.40-to-1 ratio on the NYSE and a 2.77-to-1 ratio on the Nasdaq. The Nasdaq composite lost 88 points, or 1.2 percent, to 7,442.

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