Growth Worries, Brexit Fog Send Stocks Lower

Paris, (APP - UrduPoint / Pakistan Point News - 14th Dec, 2018 ) :Wall Street led stock market falls across the globe Friday after data showed up weakness in the Chinese and eurozone economies, despite further indications Beijing and Washington may be moving to end their trade row.

Signs of easing tensions had helped propel equities higher earlier this week, with both China and the United States seeming to give key concessions, fuelling hopes they can eventually resolve their differences.

But data showing that the trade war is already having an impact on China -- consumer spending grew at its slowest pace in 15 years and factories eased up in November -- prompted equities investors there to take their gains off the table.

Rosier US retail and industrial data could not assuage fears that growth and the trade spat with Beijing will drag on sentiment and the benchmark Dow Jones Industrial Average had given up 1.7 percent some two hours into the session.

The S&P 500 and the tech-heavy Nasdaq were both adrift by around 1.5 percent.

Tokyo finished two percent lower following a survey of confidence among Japan's big businesses showed they remain cautious about the global outlook and Hong Kong and Shanghai both lost around 1.5 percent.

In Europe, a survey showed that Global trade war fears and disruptions caused by anti-government protests in France pushed business growth in the eurozone to a four-year low in December.

The slide in IHS Markit's composite eurozone PMI, to 51.3 points from 52.7 points in November, came just a day after the European Central Bank pulled its massive stimulus programme that has stoked growth in the single Currency area for the past three years.

The survey for France showed business there had flipped into reverse, as the index plunged to 49.3 in December from 54.2 in November.

"Weak data from both China and Europe overnight provided a stark reminder that global growth remains challenging to find, and 2019 outlook remains faint," said Stephen Innes, head of Asia-Pacific trade at financial analysts OANDA.

On the wider impact of recent popular protests in France against President Emmanuel Macron he noted that "even if you discount the impact of the yellow vest protests, the underlying story is one of economic weakness in Europe.

"Companies are worried about the global economic and political climate, with trade wars and Brexit adding to increased political tensions within the euro area," said IHS Markit's chief business economist Chris Williamson.

The euro slid back below $1.13, a day after the European Central Bank said it was ending its programme of asset purchases which had propped up eurozone growth for the past three years, despite ECB boss Mario Draghi's assessment that there were increasing risks to the economy of the single currency bloc.

In Europe, traders continued in vain to tease out clarity on Britain's path out of the European Union as Prime Minister Theresa May denied reports that EU leaders had refused her plea for reassurances on her Brexit plan, saying simply that "there is work still to do".

The pound lost almost one percent against the Dollar and the euro after European leaders restated their position on arrangements for the vexed issue of the Irish border, which has caused MPs in Britain to threaten to reject the only deal on offer.

Oil prices fell, with traders also worried about the impact of slower growth, analysts said.

- Key figures around 1700 GMT - New York - Dow: DOWN 1.7 percent at 24,168.96 points London - FTSE 100: DOWN 0.5 percent at 6,845.17 (close) Frankfurt - DAX 30: DOWN 0.5 percent at 10,865.77 (close) Paris - CAC 40: DOWN 0.9 percent at 4,853.70 (close) EURO STOXX 50: DOWN 0.7 percent at 3,089.36 Tokyo - Nikkei 225: DOWN 2.0 percent at 21,374.83 (close) Hong Kong - Hang Seng: DOWN 1.6 percent at 26,094.79 (close) Shanghai - Composite: DOWN 1.5 percent at 2,593.74 (close) Pound/dollar: DOWN at $1.2584 from $1.2660 Euro/dollar: DOWN at $1.1297 from $1.1361 Dollar/yen: DOWN at 113.39 Yen from 113.61 yenOil - West Texas Intermediate DOWN $1.24 at $51.14 per barrelOil - Brent Crude: DOWN $1.51 cents at $60.21 per barrel