AFP, New York :
Wall Street led stock markets lower across the globe on Friday after data showed weakness in the Chinese and eurozone economies, despite further indications Beijing and Washington might be moving to end their trade war.
Signs of easing tensions had helped propel equities higher earlier this week, with both China and the United States seeming to give key concessions, fueling hopes they can eventually resolve their differences.
But data showing that the trade war is already having an impact on China – consumer spending grew at its slowest pace in 15 years and factories eased up in November – prompted equities investors there to take their gains off the table.
Rosier US retail and industrial data could not assuage fears that growth and the trade spat with Beijing will drag on sentiment. In New York, a sell-off extended recent losses and drove all three major indices into correction – a 10 percent fall from recent peaks in October.
“The fears around slower growth rate globally have been confirmed by the fact that the Chinese data were weak,” Nate Thooft of Manulife Asset Management told AFP.
But, he said, “I still think the market is reading way too much in it.” In Europe, a survey showed that global trade war fears and disruptions caused by anti-government protests in France pushed business growth in the eurozone to a four-year low in December.
Wall Street led stock markets lower across the globe on Friday after data showed weakness in the Chinese and eurozone economies, despite further indications Beijing and Washington might be moving to end their trade war.
Signs of easing tensions had helped propel equities higher earlier this week, with both China and the United States seeming to give key concessions, fueling hopes they can eventually resolve their differences.
But data showing that the trade war is already having an impact on China – consumer spending grew at its slowest pace in 15 years and factories eased up in November – prompted equities investors there to take their gains off the table.
Rosier US retail and industrial data could not assuage fears that growth and the trade spat with Beijing will drag on sentiment. In New York, a sell-off extended recent losses and drove all three major indices into correction – a 10 percent fall from recent peaks in October.
“The fears around slower growth rate globally have been confirmed by the fact that the Chinese data were weak,” Nate Thooft of Manulife Asset Management told AFP.
But, he said, “I still think the market is reading way too much in it.” In Europe, a survey showed that global trade war fears and disruptions caused by anti-government protests in France pushed business growth in the eurozone to a four-year low in December.
