Stocks Fall Amid Uncertainty on U.S.-China Trade Deal
October 31 2019 - 7:37AM
Dow Jones News
By Caitlin Ostroff
U.S. stock futures and European equities fell Thursday amid
investor concerns around the likelihood of Chinese officials
reaching a long-term trade deal with President Trump.
Futures linked to the S&P 500 index dipped 0.4% and the
pan-continental Stoxx Europe 600 gauge dropped 0.7%. Chinese
officials have warned that they won't budge on some of the most
difficult issues that need to be negotiated with the U.S., and
expressed concerns that Mr. Trump may back out of even the initial
deal they hope to reach in coming weeks, according to
Bloomberg.
"It shows you that both sides are very suspicious," said Chris
Beauchamp, chief market analyst at U.K. online broker IG Group.
Global stocks wavered earlier in the day, as investors weighed
the Federal Reserve's signaling of a pause in further interest-rate
easing, following its third cut this year.
The WSJ Dollar Index, which tracks the greenback against a
basket of 16 currencies, fell 0.2% Thursday following the Fed's
policy statement, which signaled a higher hurdle for rate
reductions after the latest move.
Early U.S. trading saw major moves in blue-chip stocks.
Facebook jumped 4.7% in offhours trading after the social-media
giant's quarterly profit and sales exceeded Wall Street's
expectations. Starbucks climbed 3.3% after stronger U.S. sales of
iced coffee and other cold drinks bolstered revenue in the latest
quarter for the world's largest coffee chain. Apple ticked up 2%
after it reported growth in gadgets and services that helped offset
a decline in iPhone sales.
Shares of Western Digital dropped 7.5% before the opening bell
after the data-storage device company swung to a loss in the latest
quarter.
Peugeot maker PSA Group was the worst performer in Europe,
dropping 12.4% following its agreement to merge with Fiat Chrysler
Automobiles in a deal that will create one of the world's largest
auto makers by volume.
Fiat shares climbed 8.7% in Milan, while shares of rival Renault
slumped 3.4%.
Royal Dutch Shell shares trimmed 3.4% after the oil giant
expressed uncertainty over the pace of it completing its $25
billion share buyback, raising doubt over whether the program would
be finished by the end of 2020.
More third-quarter earnings are due later, with Apollo Global
Management and Kraft Heinz among the companies set to report.
Earlier Thursday, data showed Chinese manufacturing activity
fell to an eight-month low in October, in another signal that the
world's second-largest economy is under pressure from the trade
tensions. The Shanghai Composite Index fell 0.4%.
Write to Caitlin Ostroff at caitlin.ostroff@wsj.com
(END) Dow Jones Newswires
October 31, 2019 07:22 ET (11:22 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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