Auto Stocks and Trade Jitters Push Global Markets Lower
November 14 2019 - 07:09AM
Dow Jones News
By Caitlin Ostroff
Global stocks edged lower Thursday as concerns over U.S.-China
trade negotiations and weak Chinese economic data weighed on
investors.
The Stoxx Europe 600 fell 0.2%, with the trade-sensitive auto
sector down 1.3%. The U.K.'s FTSE 100 dipped 0.5% and the German
DAX fell 0.3%. Stock futures tied to the Dow Jones Industrial
Average were down 0.2%.
Shares of Mercedes-Benz maker Daimler AG fell 3.1% after it said
Thursday that it plans to cut jobs and slash personnel costs to
offset expenses required to lower car emissions. Luxury apparel
maker Burberry Group shares rose 4.6% after it beat expectations in
first-half earnings, adding to the broad rebound in luxury stocks
this year.
The latest economic data out of China showed fresh signs of
weakness, with disappointing numbers in industrial output,
household consumption and fixed-asset investment. The figures added
to evidence that the world's second-largest economy is broadly
slowing -- as consumer inflation accelerates. The data follows a
Wall Street Journal report that trade talks between the U.S. and
China have hit a snag over farm purchases.
Investors are struggling to get a grip on where the trade talks
stand or what a possible trade deal between the U.S and China might
include.
"Markets can't even define what they're looking for right now,"
said Geoffrey Yu, head of the U.K. investment office at the
wealth-management arm of UBS.
Investors reached for haven assets, with the Japanese yen up
0.2% against the dollar. Gold appreciated 0.4% and government bond
yields fell. The yield on the 10-year German bund fell to minus
0.319% from minus 0.297% Wednesday afternoon. The U.S. 10-year
Treasury slid to 1.845% from 1.870% Wednesday. Yields fall when
prices rise.
Asian stocks were mixed, with the Shanghai Composite up 0.2%
while Hong Kong's Hang Seng waned 0.9% as antigovernment protests
snarled the city. Clashes between police and protesters have
intensified in recent days. Japan's Nikkei 225 fell 0.8% following
weaker-than-expected third-quarter gross domestic product data, and
Korea's Kospi gained 0.8%.
In Turkey, the lira weakened 0.5% against the dollar after a
long-awaited meeting Wednesday between President Trump and Turkey's
President Recep Tayyip Erdogan. The talks didn't yield a resolution
to issues that have divided the two nations, including Turkey's
purchase of a Russian air-defense system and the U.S. partnership
with the Kurdish-led Syrian Democratic Forces.
Later Thursday, Walmart Inc., Viacom Inc., and NVIDIA Corp. will
report quarterly earnings. New figures for U.S. jobless claims are
also set to publish. Federal Reserve Chairman Jerome Powell will
testify in front of the House budget committee.
Write to Caitlin Ostroff at caitlin.ostroff@wsj.com
(END) Dow Jones Newswires
November 14, 2019 06:54 ET (11:54 GMT)
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