US Stocks Fail To Gain Traction Despite Retail Sales Gain

London, Sept 16 (UrduPoint / Pakistan Point News - 17th Sep, 2021 ) :US stocks fell back on Thursday despite data showing a rebound in retail sales, while European stocks advanced.

Wall Street had made solid gains on Wednesday, but it failed to maintain the momentum.

"September appears to be living up to its historically sluggish form," said analysts at Charles Schwab brokerage.

The lacklustre start came despite data showing US retail sales posted a surprise 0.7 percent rebound in August, though car sales dropped. Auto production has been hard hit by a lack of semiconductors.

"This report should prompt a belief that spending activity will be stronger (or remain strong) in coming months when fears related to the Delta variant dissipate," said Patrick O'Hare at Briefing.com.

Markets have been pulled in recent weeks between confidence in the economic recovery versus the impact of the Delta variant of the coronavirus, which has further complicated already difficult supply chain situations in some sectors.

Shortages have been driving up prices, which has also unnerved investors as a surge in inflation could prompt central banks to quickly withdraw economic stimulus and raise interest rates.

Meanwhile, data showed first-time unemployment claims edged higher in the US last week, while continuing claims dropped.

European stocks, however, moved higher.

London and Frankfurt both added 0.2 percent and Paris advanced 0.6 percent.

"It's been a slightly better day for markets in Europe, shrugging off a weak Asia handoff, with some decent gains for travel and leisure, which has enjoyed a respite after Ryanair announced it was increasing its 5-year growth target for passengers," said analyst Michael Hewson at CMC Markets UK.

The target of 225 million passengers is a 50 percent increase on the airline's 2019 levels, he added, and is an expression of confidence in the recovery of an industry which is still suffering from the Covid-19 pandemic.

Oil prices eased, after spiking the previous day on news of shrinking US crude stockpiles as storms hammered output last week from the Gulf of Mexico.

In Asia, stock markets struggled to recover from the previous day's sell-off, with Hong Kong dragged by further losses in casinos as well as tech firms after Chinese government crackdowns on the sectors.

Sentiment in the region was also hit by concerns about the spreading Delta coronavirus variant and its impact on the economic rebound.

In addition, traders are keeping tabs on Chinese property developer Evergrande, which is drowning in a sea of debt that could see it crash into a bankruptcy observers fear could have an impact far and wide.

Hong Kong's main stocks index led Asia's losses, extending its streak to a fourth straight day, with Macau casinos in the spotlight over plans by city authorities to tighten their grip on the industry.

Trillions of Dollars were wiped off the valuations of the six listed firms in reaction to the proposals, which include putting a government representative on their boards.

The announcement fanned concerns that the days of multi-billion-dollar revenues are gone in Macau, which before the pandemic raked in more in a week than Las Vegas did in a month.

Tech firms, which are high on officials' list of targets, also extended a long-running sell-off in Hong Kong with market heavyweights Alibaba and Tencent again in the red.

- Key figures around 1530 GMT - New York - Dow: DOWN 0.6 percent at 34,622.00 points EURO STOXX 50: UP 0.6 percent at 4,169.97 London - FTSE 100: UP 0.2 percent at 7,027.48 (close) Frankfurt - DAX 30: UP 0.2 percent at 15,651.75 (close) Paris - CAC 40: UP 0.6 percent at 6,622.59 (close) Tokyo - Nikkei 225: DOWN 0.6 percent at 30,323.34 (close) Hong Kong - Hang Seng Index: DOWN 1.5 percent at 24,667.85 (close) Shanghai - Composite: DOWN 1.3 percent at 3,607.09 (close) Euro/dollar: DOWN at $1.1764 from $1.1817 at 2100 GMT Wednesday Pound/dollar: DOWN at $1.3773 from $1.3840 Euro/pound: UP at 85.39 pence from 85.38 pence Dollar/yen: UP at 109.68 Yen from 109.38 yenBrent North Sea crude: DOWN 0.6 percent at $75.03 per barrelWest Texas Intermediate: DOWN 0.9 percent at $71.99 per barrel