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US stock market tumbles as China trade growth sparks fear of global economic slowdown

ANI | Updated: Jan 15, 2019 01:51 IST

Washington DC [USA], Jan 15 (ANI): US stocks suffered a minor blow-back on Monday after trade data showed China's trade growth slowing. This has sparked fresh fears of a global economic slowdown.
Even as trade talks between Washington and Beijing were slow in the past year, China's trade surplus with the U.S. soared to a record of USD 323.32 billion in 2018, MarketWatch reported.
Among the major stock markets were -- Dow Jones fell 72 points or o.3 per cent to 23,923, while Nasdaq slid 47 points or 0.7 per cent, to 6,923. Shares of S&P 500 index, on the other hand, dropped 11 points or 0.5 per cent, to 2,584.
Moreover, PG&E Corp. crashed over 49 per cent, after the American natural gas company announced that it will or bankruptcy on or after January 29.
Newmont Mining Corp. stocks saw a fall of 7 per cent after the American mining company said it would buy Canadian miner Goldcorp as part of a deal amounting to $10 billion, as per the report.
However, it was not a gloomy picture for other companies in the US stock market as they registered profits.
Shares of Gannett Co. Inc were up 35 per cent after private-equity firm MNG announced an uncalled bid to buy the owner of USA Today, valuing the company at $1.4 billion, according to MarketWatch.
Citigroup Inc. stock was up 1.2 per cent, after the bank reported a 14 per cent rise in adjusted quarterly profit, although there was a surprise drop in revenue expectations.
The Asian stock markets too finished on a weaker note, following the drop in shares amounting to 1.4 per cent in Hong Kong's Hang Seng Index.
"Poor Chinese trade data (specifically, a tiny 0.2 per cent y/y gain in exports and a 3.1 per cent fall in imports which resulted in a wider-than-expected CNY 395 billion trade surplus) have given markets an early Monday morning reminder that the Chinese economy, and global trade, are slowing," Societe Generale strategist Kit Juckes was quoted by Barron as saying.
"Asian equity markets are soft, government bond yields are lower and the yen is slightly stronger. Not a morning of great drama, just a somewhat plaintive one, with a mood that is unlikely to be lifted by a lack of highlights on the economic agenda," Juckes added. (ANI)