This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.nytimes.com/2018/12/14/business/china-markets-.html

The article has changed 11 times. There is an RSS feed of changes available.

Version 6 Version 7
Global Stocks Drop Amid a Worsening Economic Outlook in China Global Stocks Drop Amid a Worsening Economic Outlook in China
(35 minutes later)
The global stock sell-off deepened on Friday, as another week of volatile trading came to a close and uncertainty over the health of the global economy continued to grip financial markets. The global stock sell-off deepened on Friday, as another week of volatile trading came to a close with uncertainty over the health of the global economy continuing to grip financial markets.
The S&P 500 stock index fell more than 1.5 percent in early afternoon trading, bringing its losses for the year so far to more than 2 percent. Markets across Europe and Asia were also lower, as were economically sensitive commodities like crude oil, which fell more than 2 percent. The S&P 500-stock index fell more than 1.5 percent in early afternoon trading.. Markets across Europe and Asia were also lower, as were economically sensitive commodities like crude oil, which fell more than 2 percent.
Friday’s decline came after China’s retail sales and industrial output suggested the country’s slowdown deepened in November as the trade war wore on. The world’s second-largest economy had already reported a slowdown in trade, and a sharp slowdown in economic growth.Friday’s decline came after China’s retail sales and industrial output suggested the country’s slowdown deepened in November as the trade war wore on. The world’s second-largest economy had already reported a slowdown in trade, and a sharp slowdown in economic growth.
[Read more about why economists say China’s slowdown is the worst since the global financial crisis a decade ago.][Read more about why economists say China’s slowdown is the worst since the global financial crisis a decade ago.]
Stocks had been buoyed earlier this week by signs of a thaw between China and the United States that suggested Beijing and Washington are making progress toward a deal to end the trade war. The good news on that front continued on Friday, with China pledging to suspend additional tariffs on imports of American-made cars for three months starting in the new year. Automakers’ shares rose Friday on the news. Stocks had been buoyed earlier this week by signs of a thaw between China and the United States that suggested Beijing and Washington were making progress toward a deal to end the trade war. Developments on that front continued on Friday, with China pledging to suspend additional tariffs on imports of American-made cars for three months starting in the new year. Automakers’ shares rose Friday on the news.
But more broadly, investors remained jittery, and Friday’s early decline erased the week’s gains for the benchmark S&P 500 stock index. The index is in negative territory for the year.But more broadly, investors remained jittery, and Friday’s early decline erased the week’s gains for the benchmark S&P 500 stock index. The index is in negative territory for the year.
Wall Street had been faring better than markets around the world, as the United States economy continued to show signs of robust growth and job creation, even amid a slowdown in China, Germany and Japan. But gains through late September faded quickly as investors begin to assess the potential for trade concerns, economic uncertainty and rising interest rates to erode corporate profit growth.
[Read more about the turmoil that rocked Wall Street last week.]
The technology-heavy Nasdaq composite also added to recent losses as Apple, whose stock has been weighed down by concerns of a iPhone sales slowdown in China, fell 2 percent. The weaker-than-expected data from China came just days after trade figures also disappointed.The technology-heavy Nasdaq composite also added to recent losses as Apple, whose stock has been weighed down by concerns of a iPhone sales slowdown in China, fell 2 percent. The weaker-than-expected data from China came just days after trade figures also disappointed.
Until September, Wall Street had been faring better than markets around the world, as the United States economy continued to show signs of robust growth and job creation, even amid a slowdown in China, Germany and Japan. But gains through late September faded quickly as investors begin to assess the potential for trade concerns, economic uncertainty to dampen a decade long economic expansion, and for rising interest rates to erode corporate profit growth.
“More than global growth, the stock market senses there is something not right here closer to home that is bugging investors as the clock is ticking on the long economic expansion that has lifted confidence and corporate profits,” Chris Rupkey, chief financial economist at MUFG, wrote in an email. “The economy doesn’t grow longer than ten years, that’s an historical fact. No economic growth, no corporate earnings.”
[Read more about the turmoil that rocked Wall Street last week.]
Earlier in the day, markets across Asia dropped. The SSE index in Shanghai ended trading down 1.5 percent, while stocks in Shenzen were off 2.5 percent. Japan’s Nikkei 225 index fell 2 percent, and Hong Kong’s Hang Seng dipped 1.6 percent.Earlier in the day, markets across Asia dropped. The SSE index in Shanghai ended trading down 1.5 percent, while stocks in Shenzen were off 2.5 percent. Japan’s Nikkei 225 index fell 2 percent, and Hong Kong’s Hang Seng dipped 1.6 percent.
European markets followed a similar downward path, though the declines there weren’t as steep. In Britain, where Prime Minister Theresa May was rebuffed by European leaders in her request for help in navigating Britain’s exit from the European Union, the FTSE 100 was down 0.5 percent. The Euro Stoxx 50 was down 0.8 percent.European markets followed a similar downward path, though the declines there weren’t as steep. In Britain, where Prime Minister Theresa May was rebuffed by European leaders in her request for help in navigating Britain’s exit from the European Union, the FTSE 100 was down 0.5 percent. The Euro Stoxx 50 was down 0.8 percent.
Mrs. May’s continuing troubles also appeared to taking a toll on the pound, which slid through the day and was at $1.254 by early afternoon.Mrs. May’s continuing troubles also appeared to taking a toll on the pound, which slid through the day and was at $1.254 by early afternoon.