US Stock Markets Drift Lower On Disappointing Economic Data


US stock markets drift lower on disappointing economic data

US stocks mostly edged lower Tuesday as negative economic news outweighed continued interest in tech stocks while European markets turned in a mixed performance

London, (UrduPoint / Pakistan Point News - 27th Feb, 2024) US stocks mostly edged lower Tuesday as negative economic news outweighed continued interest in tech stocks while European markets turned in a mixed performance.

Sentiment was dampened by survey data showing US consumer confidence fell much more than expected in February and new durable goods orders for January also dropping by more than expected.

"Risk on sentiment has taken a hit as US durable goods orders saw their biggest month-on-month fall since April 2020 while US home prices increased the most since November 2022," said Axel Rudolph, Senior Market Analyst at online trading platform IG.

"The rally in major US stock indices is thus taking a breather."

Movement was limited, though, as investors awaited US inflation data Thursday that could offer a better sense of when the Federal Reserve may start cutting interest rates.

The Dow Jones Industrial average and the wider S&P 500 were down marginally, and the tech-heavy NASDAQ was up slightly.

Department store Macy's initially fell after reporting disappointing earnings but then rose as it announced plans to close around 150 locations to concentrate on its more upscale brands.

European equity markets ended mixed.

Frankfurt gained 0.8 percent after data showed German shoppers heading into March feeling slightly more optimistic about their future income, but consumer morale remains low overall as a downturn in Europe's largest economy drags on.

London finished little changed and Paris slightly higher.

"The economic outlook for Europe is for stagnant growth this year, however, its biggest companies are global powerhouses," said Kathleen Brooks, research director at XTB.

"We may continue to see a strong performance of the European index in the coming months."

Oil prices rose higher and the Dollar little changed against major currencies.

The "oil price is once again rising amid ongoing shipping disruptions and repeated breakdowns in talks for a Gaza cease fire that raise supply worries," said IG's Rudolph.

- Key figures around 1630 GMT -

New York - Dow: DOWN 0.4 percent at 38,899.14 points

New York - S&P 500: DOWN 0.1 percent at 5,065.37

New York - Nasdaq: UP 0.1 percent at 15,993.79

London - FTSE 100: DOWN less than 0.1 percent at 7,683.02 (close)

Paris - CAC 40: UP 0.2 percent at 7,948.40 (close)

Frankfurt - DAX: UP 0.8 percent at 17,556.49 (close)

EURO STOXX 50: UP 0.4 percent at 4,885.74 (close)

Tokyo - Nikkei 225: FLAT at 39,239.52 (close)

Hong Kong - Hang Seng Index: UP 0.9 percent at 16,790.80 (close)

Shanghai - Composite: UP 1.3 percent at 3,015.48 (close)

Euro/dollar: UP at $1.0860 from $1.0853 on Monday

Dollar/yen: DOWN at 150.42 Yen from 150.70 yen

Pound/dollar: UP at $1.2693 from $1.2684

Euro/pound: UNCHANGED at 85.54 pence

Brent North Sea Crude: UP 0.8 percent at $82.21 per barrel

West Texas Intermediate: UP 1.2 percent at $78.47 per barrel