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Stock markets downbeat on growth concerns
NEW YORK, July 19, 2019 (BSS/AFP) – Stock markets mostly fell Thursday on
concerns about an uncertain global economic outlook amid lingering disquiet
about the China-US trade war.
Wall Street rose just barely out of the red following remarks from a top
Federal Reserve policymaker who reiterated the signal that the US central
bank was likely to cut interest rates later this month.
The speech New York Federal Reserve President John Williams also sent US
Treasury yields lower and weakened the dollar.
Earlier in the day, there were few catalysts to drive buying in other
markets and investors were cashing out, analysts said, as the expected Fed
rate cut is already priced in.
Meanwhile, Britain’s official forecast said Thursday the nation would
slide into a year-long recession should it leave the European Union without a
deal on future economic relations.
Market analyst Fawad Razaqzada remarked that concern about the global
economy has been offset so far by indications from central banks that they
will step in if needed to support growth.
“But unless growth starts to pick up, central banks’ actions will only
help to delay the inevitable: a sizeable correction,” he predicted.
US corporate earnings season has featured mixed results.
Shares in Netflix fell more than 10 percent after quarterly earnings,
released after the close on Wednesday, showed weaker-than-expected subscriber
growth.
Tokyo led stock market losses, sinking two percent as it was hit by a
stronger yen and data showing another drop in exports owing to falling demand
and global trade uncertainty.
Energy firms tracked their US counterparts lower following another steep
drop in oil prices Wednesday that came after government data showing a pick-
up in US gasoline inventories.
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The figures represent the weakest demand in five years, analysts said.
“Gasoline consumption is painfully weak given US consumers are in peak
driving season, which will be invariably seen as the Grim Reaper of sorts,”
said Stephen Innes at Vanguard Markets.
“If we put this data set in the context of slowing China second-quarter
GDP, where consumption was the most significant drag, the numbers do suggest
that the global economic slowdown is being echoed through weaker global
demand data. Definitely a bearish signal for oil demand.”
– Key figures around 2050 GMT –
New York – Dow: FLAT at 27,222.97 (close)
New York – S&P 500: UP 0.4 percent at 2,995.11 (close)
New York – Nasdaq: UP 0.3 percent at 8,207.24 (close)
London – FTSE 100: DOWN 0.6 percent at 7,493.09 (close)
Frankfurt – DAX 30: DOWN 0.9 percent at 12,227.85 (close)
Paris – CAC 40: DOWN 0.4 percent at 5,550.55 (close)
EURO STOXX 50: DOWN 0.5 percent at 3,482.83 (close)
Tokyo – Nikkei 225: DOWN 2.0 percent at 21,046.24 (close)
Hong Kong – Hang Seng: DOWN 0.5 percent at 28,461.66 (close)
Shanghai – Composite: DOWN 1.0 percent at 2,901.18 (close)
Pound/dollar: UP at $1.2548 from $1.2431 at 2050 GMT
Pound/euro: DOWN at 89.87 pence from 90.27 pence
Euro/dollar: UP at $1.1277 from $1.1222
Dollar/yen: DOWN at 107.30 yen from 108.11 yen
Brent North Sea crude: DOWN $1.73 at $61.93 per barrel
West Texas Intermediate: DOWN $1.48 at $55.30 per barrel
BSS/AFP/HR/0955