Stocks are indicated sharply lower after disappointing Chinese economic data sparked a sell-off in global equity markets Tuesday. Less than an hour before the start of trading in New York, stock index futures indicate that the Dow Jones Industrial Average might suffer a triple digit loss at the open.
Markets across Asia fell after the Conference Board slashed its April leading economic indicator for the countryÃ¢â‚¬â„¢s economy; raising fresh concerns that worldÃ¢â‚¬â„¢s leading engine of economic growth is slowing faster-than-expected. The Shanghai Composite Index took a 4.3 percent hit on the news. Hong KongÃ¢â‚¬â„¢s Hang Seng lost 2.3 percent and JapanÃ¢â‚¬â„¢s Nikkei lost 1.3 percent.
Markets are broadly lower across Europe and the euro is back under fire as well. FranceÃ¢â‚¬â„¢s CAC 40 lost 2.7 percent. UKÃ¢â‚¬â„¢s FTSE and GermanyÃ¢â‚¬â„¢s DAX are both down more than 2 percent. The euro slid .0066 to 1.2209 against the US dollar.
Crude oil tumbled $2.10 to $76.15 a barrel and gold is flat at $1238.60 an ounce.
Bonds caught the flight-to-safety bid, as global equity markets face renewed selling pressure. The benchmark ten-year Treasury is up 8/32nd and yields now just 2.99 percent.
Attention shifts to a report on Consumer Confidence at 10:00 a.m. Eastern Time. Economists expect to see a drop to 62 in June, down from 63.3 the month before.
Among the stocks to watch, Micron Technology (MU) shares are down nearly 5 percent after the chipmaker reported better-than-expected earnings and revenues, but forecast flat shipments going forward. Smithfield Foods (SFD) is up 4.2 percent following a story that BrazilÃ¢â‚¬â„¢s JBS is in talks to buy the company. 3M (MMM) rose 1.2 percent after raising its second quarter earnings outlook. Baidu.com (BIDU) fell 3.5 percent after Google (GOOG) said it was changing the way it operates in China as it looks for ways to renew a business license.
Category: Market Update
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.