Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

GLOBAL MARKETS-Asia shares, US stock futures slide as China's exports slump jolts investors

Published 2019-01-13, 11:04 p/m
Updated 2019-01-13, 11:10 p/m
© Reuters.  GLOBAL MARKETS-Asia shares, US stock futures slide as China's exports slump jolts investors

© Reuters. GLOBAL MARKETS-Asia shares, US stock futures slide as China's exports slump jolts investors

* Asian stock markets : https://tmsnrt.rs/2zpUAr4

* MSCI ex-Japan skids 1 pct, Tokyo on public holiday

* China's Dec exports, imports fall, miss forecasts

* Chinese shares in red, E-Minis stumbles too

By Swati Pandey

SYDNEY, Jan 14 (Reuters) - Asian shares and U.S. stock futures skidded on Monday after a shock contraction in Chinese exports pointed to deepening cracks in the world's second-biggest economy and raised fears of a sharper slowdown in global growth and corporate profits.

Latest data from China showed imports fell 7.6 percent year-on-year in December when analysts had predicted a 5 percent rise while exports unexpectedly dropped 4.4 percent, confounding expectations for a 3 percent gain. disappointing numbers reinforced fears U.S. tariffs on Chinese goods were putting a big strain on China's already cooling economy. Australian dollar AUD=D3 , a key gauge of global risk sentiment and a liquid proxy for the Chinese yuan, toppled from Friday's one-month peak of $0.7235 to $0.7186 after the data.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS extended losses to notch a 1 percent decline from Friday's 1-1/2 month top, with Chinese and Hong Kong shares the biggest losers.

Liquidity was generally expected to be light during Asian hours as Japan was on public holiday.

Chinese shares were in the red, with the blue-chip index .CSI300 down 0.8 percent. Hong Kong's Hang Seng index .HSI stumbled 1.4 percent while Australian shares .AXJO eased 0.2 percent after starting firm.

E-minis for the S&P 500 ESc1 declined 0.8 percent, in an indication of heightened risk aversion.

"The data was very weak and it just adds to the incentives for the Chinese side to strike a trade deal with the U.S. in the coming weeks," said Ray Attrill, forex strategist at National Australia Bank.

"You could argue that the worse the numbers are the more incentive it provides to resolve the dispute."

Beijing and Washington have been in talks for months now to try and resolve their bitter trade war, with no signs so far of any substantial progress in negotiations. also amplifies the extent to which they (Chinese policymakers) have to provide stimulus for the domestic economy," Attrill added.

In the wake of the trade dispute, China's policymakers have already pledged to step up support this year, following a raft of measures in 2018 including fast tracking infrastructure projects and cuts in banks' reserve requirements and taxes. CLOUDS

On the earnings front, U.S. banks are in sharp focus with quarterly results from Citigroup (NYSE:C) C.N due Monday followed by JPMorgan Chase (NYSE:JPM) JPM.N , Wells Fargo (NYSE:WFC) WFC.N , Goldman Sachs (NYSE:GS) GS.N and Morgan Stanley (NYSE:MS) MS.N later in the week.

Expectations are dour with profits for U.S. companies forecast to rise 6.4 percent, down from an Oct. 1 estimate of 10.2 percent and a big drop from 2018's tax cut-fueled gain of more than 20 percent. attention was also on the U.S. government shutdown, now in its 24th day, and with no resolution in sight.

Further clouding the outlook, Britain faces a hugely uncertain path with a vote for a deal for its exit from the European Union due in the U.K. parliament on Tuesday. these factors were at play last week when the main U.S. indices ended Friday little changed as investors reset positions ahead of key risk events. .N

In currencies, the euro was subdued EUR= as it hit key technical levels following data from Italy on Friday that showed the euro zone's third-largest economy was at risk of recession. single currency was last at $1.1466.

The dollar's index .DXY , which measures the greenback against a basket of major currencies, edged 0.1 percent lower to 95.57 after two straight days of gains.

In commodities, oil prices extended losses from Friday as investors worried about a global slowdown. O/R

U.S. crude CLc1 fell 59 cents to $51 while Brent LCOc1 eased 65 cents to $59.83.

Gold XAU= gained to inch towards a recent seven-month high of $1,298.42 an ounce.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Asia stock markets

https://tmsnrt.rs/2zpUAr4 Asia-Pacific valuations

https://tmsnrt.rs/2Dr2BQA

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Editing by Shri Navaratnam)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.