World stocks turn sluggish on weaker China’s trade

Beijing: World shares slipped on Thursday after China reported that its exports fell for a fourth straight month in August, adding to pressures on its slowing economy. Oil prices and US futures also fell. Germany’s DAX lost 0.2 per cent to 15,718.12. In London, the FTSE 100 edged 0.1 per cent lower, to 7419.42. The CAC 40 in Paris gained 2 points to 7,196.75.

The futures for the S&P-500 was down 0.4 per cent, while that for the Dow Jones Industrial Average lost 0.1 per cent. China said its exports fell 8.8 per cent in August from a year earlier, while imports were down 7.3 per cent. The declines were smaller than the double-digit drops in July, however, and were better than most forecasts. Hong Kong’s Hang Seng, which has yoyoed this week on news about possible policy changes for China’s troubled property sector, declined on selling of tech shares. It fell 1.3per cent to 18,202.07. The Shanghai Composite index lost 1.1 per cent to 3,122.35, while Tokyo’s Nikkei 225 shed 0.8 per cent to 32,991.08. In Seoul, the Kospi sank 0.6 per cent to 2,548.26. Australia’s S&P/ASX 200 was off 1.2 per cent at 7,171.00. Shares in most other regional markets fell. On Wednesday, the S&P-500 dropped 0.7 per cent and the Dow industrials shed 0.6 per cent. The Nasdaq gave back 1.1 per cent.

Big technology stocks were among the biggest drags on the market. Apple fell 3.6per cent and Nvidia dropped 3.1 per cent. But several companies made big moves after reporting earnings and other updates. AeroVironment jumped 20.7 per cent after the maker of unmanned aircrafts raised its sales forecast for the year. Roku rose 2.9 per cent after giving investors an encouraging financial update and saying it would cut 10 per cent of its staff. The dominant economic theme remains inflation and interest rates, which the Fed has boosted in an effort to bring down prices. Investors have been hoping that the Fed might moderate interest rate increases going forward as inflation has been easing for months. Treasury yields climbed following data showing the US services sector remains strong, and when bond yields shoot higher, investors tend to reconsider whether stocks are too expensive.