Stock markets are down again as weak eurozone factory output and Chinese trade woes worry investors
- Latest: Eurozone industrial production shrank 1.7% in November
- Worst decline in almost three years.
- Introduction: China’s exports fell 4.4% in December
- Biggest fall in exports in two years as slowdown gathers pace
- But US-China trade surplus hits a record
If you’re just tuning in, here’s a chart showing the weak Chinese trade data that spooked markets overnight (exports down 4.4% in November, imports down over 7%).
“China’s exports slumped in December as a rush of orders to beat expected tariffs showed signs of fading and as domestic buyers succumbed to a worsening economic outlook.”https://t.co/7cep0UpMI7 pic.twitter.com/stRfpqiQPJ
The US stock market is expected to drop around 1% when trading begins in 70 minutes time.
The surprise drop in Chinese exports and the worse-than-expected eurozone factory output, is weighing on Wall Street – as the US government shutdown drags on.
Europe’s Chinese concerns only ramped up as Monday went on, with the Dow Jones set to fret after the bell rings on Wall Street.
Given that the commodity sector is rightly edgy every time some bad news comes out of Beijing, it stands to reason that the oil and mining-heavy FTSE was the worst hit of the major indices. As Brent Crude lost 1.5%, and copper dropped 1.3%, the FTSE fell back under 6850 thanks to a 1% slide, the likes of BP, Shell, Anglo American and Antofagasta causing the brunt of the decline.