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Global stocks mixed as China reports solid economic growth
NEW YORK, April 18, 2019 (BSS/AFP) – Global stocks finished mixed
Wednesday following solid Chinese growth data while weakness in IBM and
pharma stocks weighed on Wall Street.
Chinese data estimated first-quarter growth at 6.4 percent, better-than-
expected and a sign government stimulus was helping to boost the world’s
second-biggest economy.
The news follows a number of readings indicating stability in China, with
factory activity, exports, new loans and inflation all improving — tempering
concerns about a slowdown that could have a major impact on the global
economy.
“From Beijing’s perspective, this set of data should show that the policy
reset in mid-2018 from de-leverage to growth support is starting to yield
results,” said Tai Hui, chief market strategist for Asia-Pacific at JP Morgan
Asset Management.
Meanwhile, a Federal Reserve report described the US economy as expanding
at a “slight-to-moderate pace,” adding that the outlook was clouded by labor
shortages and trade uncertainty.
Analysts are awaiting the next steps in the months-long US and China trade
talks, with US President Donald Trump on Wednesday saying he expected the
talks would be “successful.”
Citing an unnamed source, The Journal said US Trade Representative Robert
Lighthizer was expected to travel to Beijing for a new round of face-to-face
talks tentatively set for the week of April 29.
Lighthizer’s office declined to comment on the report.
Bourses throughout Europe and Asia were generally flat to positive, while
US stocks edged lower.
In the US, health and pharma companies such as Merck, Anthem and Eli Lilly
all lost about three percent or more amid worries over proposals in
Washington for universal health coverage.
Bill Lynch of Hinsdale Associates attributed the pullback in the sector to
“Medicare for All” proposals by Democratic presidential candidates, which
could hit profits or abolish private insurance.
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Hinsdale added that the market reaction is “probably overdone given that
the election is still a year and a half away.”
Among other companies, Dow member IBM sank 4.2 percent after first-quarter
sales of $18.2 billion lagged analyst expectations.
– Key figures around 2100 GMT –
New York – Dow: DOWN less than 0.1 percent at 26,449.54 (close)
New York – S&P 500: DOWN 0.2 percent at 2,900.45 (close)
New York – Nasdaq: DOWN 0.1 percent at 7,996.08 (close)
London – FTSE 100: FLAT at 7,471.32 (close)
Frankfurt – DAX 30: UP 0.4 percent at 12,153.07 (close)
Paris – CAC 40: UP 0.6 percent at 5,563.09 (close)
EURO STOXX 50: UP 0.4 percent at 3,477.73 (close)
Tokyo – Nikkei 225: UP 0.3 percent at 22,277.97 (close)
Hong Kong – Hang Seng: FLAT at 30,124.68 (close)
Shanghai – Composite: UP 0.3 percent at 3,263.12 (close)
Pound/dollar: DOWN at $1.3039 from $1.3048 at 2100 GMT on Tuesday
Euro/pound: UP at 86.63 pence from 86.45 pence
Euro/dollar: UP at $1.1296 from $1.1281
Dollar/yen: UP at 112.09 yen from 112.00 yen
Oil – Brent Crude: DOWN 10 cents at $71.62 per barrel
Oil – West Texas Intermediate: DOWN 29 cents at $63.76 per barrel
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