Auto Stocks and Trade Jitters Push Global Markets Lower
November 14 2019 - 8:30AM
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 0.2%, with the trade-sensitive auto
sector down 1.1%. The U.K.'s FTSE 100 dipped 0.4% and the German
DAX fell 0.1%. Stock futures tied to the Dow Jones Industrial
Average were down 0.2%.
Cisco Systems Inc. saw shares tumble 5.7% in off-hours trading
after the technology company Wednesday projected its first
quarterly revenue decline in more than two years. In premarket
trading, Walmart Inc. climbed 3% after the retail giant reported
Thursday that sales from stores and websites operating for at least
12 months rose 3.2%, extending a four-year streak of quarterly
sales gains. Viacom Inc., the parent of Comedy Central and
Nickelodeon, gained 1.5% after the media network reported fiscal
fourth-quarter profit fell less than analysts expected.
In Europe, 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 3.3% after it beat
expectations in first-half earnings, adding to the broad rebound in
luxury stocks this year.
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.
Investors are struggling to get a grip on where the trade talks
stand or what a possible trade deal between the U.S and China might
include.
"Markets can't even define what they're looking for right now,"
said Geoffrey Yu, head of the U.K. investment office at the
wealth-management arm of UBS.
Investors reached for haven assets, with the Japanese yen up
0.2% against the dollar. Gold appreciated 0.4% and government bond
yields fell. The yield on the 10-year German bund fell to minus
0.325% from minus 0.297% Wednesday afternoon. The U.S. 10-year
Treasury slid to 1.843% 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 0.3% 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.
New figures for U.S. jobless claims are set to publish later.
Federal Reserve Chairman Jerome Powell will testify in front of the
House budget committee.
Write to Caitlin Ostroff at caitlin.ostroff@wsj.com
(END) Dow Jones Newswires
November 14, 2019 08:15 ET (13:15 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
Cisco Systems (NASDAQ:CSCO)
Historical Stock Chart
From Aug 2024 to Sep 2024
Cisco Systems (NASDAQ:CSCO)
Historical Stock Chart
From Sep 2023 to Sep 2024