U.S. Stocks Fall on Trade Deal Uncertainty

Date : 11/11/2019 @ 5:34PM
Source : Dow Jones News

U.S. Stocks Fall on Trade Deal Uncertainty

By Avantika Chilkoti 

U.S. stocks slipped Monday, dragged lower by broad declines across all but one sector in the S&P 500.

The Dow Jones Industrial Average fell 115 points, or 0.4%, to 27566, retreating from an all-time high hit Friday. The S&P 500 lost 0.3% and the Nasdaq Composite declined 0.3%.

With the bulk of third-quarter earnings results out, investors' attention has lately turned back to the U.S. and China's trade talks.

After some optimism around the prospects of a "phase one" trade deal last week, some analysts like Mike Bell, global market strategist at J.P. Morgan Asset Management, have flagged concerns that investors could be disappointed by the scope of any agreement.

"The fundamental trade tension between the U.S. and China is unlikely to go away in a hurry, and I think the problem with calling it a 'phase one' trade deal is that it then implies there will be a 'phase two' trade deal," Mr. Bell said.

Energy shares led declines in the S&P 500 Monday, with the sector recently down 0.7%. U.S. crude-oil prices fell 0.3% to $57.07 a barrel after Oman's oil minister said current production curbs among the Organization of the Petroleum Exporting Countries are likely to be extended until the end of 2020, but won't be deepened in the short term.

Technology shares were also broadly lower, with Micron Technology down 2.1% and Activision Blizzard off 2.8%.

The U.S. bond market was closed in observance of Veterans Day.

Earlier, Hong Kong's Hang Seng benchmark closed down 2.6%, the fourth-biggest drop of the year, after police fired gunshots at protesters and demonstrations across the city forced schools and offices to close early.

"It's very concerning today," said Weiqi Zhu, a fund manager at Gao Zheng Asset Management, adding that political uncertainty was putting off investment in Hong Kong. "The violence is up to another stage now."

The continuing protests have triggered similar selloffs this year, including in August when demonstrators paralyzed the airport, one of the world's busiest travel hubs. The Hang Seng Index is one of the weakest major stock-market performers this year, up 4%, compared with double-digit gains elsewhere in Asia, the U.S. and Europe.

In mainland China, the Shanghai Composite fell 1.8%. Consumer inflation data out over the weekend showed prices soared in October to the highest level in more than seven years, fueled by a continued surge in pork prices. Analysts said the new data reduced the chances of further monetary easing in China, at least in the coming months.

The Stoxx Europe 600 rose less than 0.1%. Mining stocks, which are often sensitive to changes in Chinese macroeconomic policy, were among the weaker performers Monday, with Glencore losing 3.5% and BHP down 2.1%.

In currencies, the British pound was up 0.8% against the U.S. dollar after Nigel Farage's Brexit Party said it won't contest Conservative-held seats in the December election. The move could make it easier for current Prime Minister Boris Johnson to obtain a majority in the election.

Akane Otani and Steven Russolillo contributed to this article.

Write to Avantika Chilkoti at Avantika.Chilkoti@wsj.com


(END) Dow Jones Newswires

November 11, 2019 12:19 ET (17:19 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.

Your Recent History
Gulf Keyst..
FTSE 100
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.

NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.