Auto Stocks and Trade Jitters Push Global Markets Lower
November 14 2019 - 5:44AM
Dow Jones News
By Caitlin Ostroff
Global stocks edged lower Thursday as concerns over U.S.-China
trade negotiations and weak Chinese economic data weighed on
investors.
The Stoxx Europe 600 fell 0.1%, with the trade-sensitive auto
sector down 1.3%. The U.K.'s FTSE 100 dipped 0.2% and the German
DAX fell 0.3%. Stock futures tied to the Dow Jones Industrial
Average were down 0.2%.
The latest economic data out of China showed fresh signs of
weakness, with disappointing numbers in industrial output,
household consumption and fixed-asset investment. The figures added
to evidence that the world's second-largest economy is broadly
slowing -- as consumer inflation accelerates. The data follows a
Wall Street Journal report that trade talks between the U.S. and
China have hit a snag over farm purchases.
Shares of Mercedes-Benz maker Daimler AG fell 3.4% after it said
Thursday that it plans to cut jobs and slash personnel costs to
offset expenses required to lower car emissions. Luxury apparel
maker Burberry Group shares rose 5% after it beat expectations in
first-half earnings, adding to the broad rebound in luxury stocks
this year.
Investors reached for haven assets, with the Japanese yen up
0.2% against the dollar and the Swiss Franc rising 0.3% against the
dollar. Gold appreciated 0.5% and government bond yields fell. The
yield on the 10-year German bund fell to minus 0.329% from minus
0.297% Wednesday afternoon. The U.S. 10-year Treasury slid to
1.839% from 1.870% Wednesday. Yields fall when prices rise.
Asian stocks were mixed, with the Shanghai Composite up 0.2%
while Hong Kong's Hang Seng waned 0.9% as antigovernment protests
snarled the city. Clashes between police and protesters have
intensified in recent days. Japan's Nikkei 225 fell 0.8% following
weaker-than-expected third-quarter gross domestic product data, and
Korea's Kospi gained 0.8%.
In Turkey, the lira weakened 0.6% against the dollar after a
long-awaited meeting Wednesday between President Trump and Turkey's
President Recep Tayyip Erdogan. The talks didn't yield a resolution
to issues that have divided the two nations, including Turkey's
purchase of a Russian air-defense system and the U.S. partnership
with the Kurdish-led Syrian Democratic Forces.
Later Thursday, Walmart Inc., Viacom Inc., and NVIDIA Corp. will
report quarterly earnings.
Write to Caitlin Ostroff at caitlin.ostroff@wsj.com
(END) Dow Jones Newswires
November 14, 2019 05:29 ET (10:29 GMT)
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