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GLOBAL MARKETS-Stocks weak on Chinese data, oil slips

Published 2015-10-13, 02:20 p/m
© Reuters.  GLOBAL MARKETS-Stocks weak on Chinese data, oil slips
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* AB InBev wins over SABMiller after more than $100 bln
offer
* Oil recovers from 5 pct slide; Treasuries prices rise
* Shares set to snap longest winning streak since February

(Updates prices)
By Rodrigo Campos
NEW YORK, Oct 13 (Reuters) - A gauge of stocks in major
markets fell on Tuesday for the first session in 10 after
Chinese trade data reinforced views that the world's
second-largest economy continues to lose momentum, while crude
futures lost steam after early gains.
China's exports fell less than expected in September but a
sharper fall in imports left economists divided over whether the
country's ailing trade sector is showing signs of turning
around. The data was not enough to suggest a greater risk of a
hard landing, but it did feed expectations that Beijing will
soon add to stimulus measures.
St. Louis Federal Reserve President James Bullard, who
opposed the decision to delay a rate hike when the Fed met in
September, said on Tuesday the economic data since released is
unlikely to convince other policymakers to increase rates when
the Fed meets in two weeks.
Wall Street fell with financial stocks among the largest
decliners on the S&P 500, pressured by the expectation of lower
interest rates for longer. JPMorgan (N:JPM) JPM.N reports earnings
after the closing bell and within a week Goldman Sachs (N:GS), Bank of
America, Citigroup (N:C), Wells Fargo (N:WFC) and Morgan Stanley (N:MS) will post
results.
Energy stocks, which led earlier, were also down as crude
futures pared gains.
The world's two biggest brewers agreed to create a single
company after AB InBev ABI.BR won over SABMiller SAB.L at
its fifth attempt. The cash and share package is worth more than
$100 billion.
The Dow Jones industrial average .DJI fell 23.65 points,
or 0.14 percent, to 17,108.21, the S&P 500 .SPX lost 7.27
points, or 0.36 percent, to 2,010.19 and the Nasdaq
Composite .IXIC dropped 17.76 points, or 0.37 percent, to
4,820.89.
The MSCI world share index .MIWD00000PUS fell 0.7 percent,
on track to end its longest winning streak since February.
The FTSEurofirst 300 index .FTEU3 ended down 0.9 percent
and emerging market stocks .MSCIEF fell 1.4 percent. MSCI's
index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell
1 percent overnight. Japan's Nikkei .N225 fell 1.1 percent.


OIL BOUNCEBACK
Crude prices lost all their early gains. Brent LCOc1 fell
0.6 percent after gaining 1.7 percent and WTI CLc1 dropped 0.3
percent after rising as much as 2.8 percent. Both fell more than
5 percent on Monday.
Safe-haven U.S. Treasuries prices rose after the Chinese
data, while continued expectations for a later Fed rate liftoff
also supported prices.
"It's all a global growth fear trade," said Priya Misra,
head of global rates strategy at TD Securities in New York. She
said the Chinese data was the main catalyst behind the demand
for safe-haven U.S. government debt.
U.S. 30-year Treasury bonds US30YT=RR were last up 23/32
in price to yield 2.8914 percent, from a yield of 2.928 percent
late on Friday. Benchmark 10-year notes US10YT=RR were last up
13/32 to yield 2.0527 percent, from a yield of 2.099 percent
late on Friday.
The U.S. bond market was closed on Monday.
The dollar's value against a basket of six major currencies
.DXY dipped less than 0.1 percent and earlier touched its
lowest in nearly a month.
The euro EUR= added 0.2 percent against the greenback at
$1.1380 and the yen JPY= also strengthened 0.2 percent at
119.78 per dollar.

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