Â© Reuters. FILE PHOTO: A man wearing a face mask walks past a screen displaying a chart showing the recent Nikkei stock average outside a brokerage house, amid the coronavirus disease (COVID-19) outbreak , in Tokyo, Japan on November 2, 2020. REUTERS / Issei Kato
By Elizabeth Dilts Marshall
NEW YORK (Reuters) – Global stock markets edged down globally on Thursday, with investment concerns in China and a mixed day on Wall Street outweighing positive economic data in the United States.
All three major indices spent much of the day in negative territory as rising US Treasury yields put pressure on market-leading tech stocks and the rising dollar weighed on exporters.
International investors who have crammed into China in recent years are now bracing for one of its big downturns as the problems with over-indebted real estate giant China Evergrande come to a head.
The decrease in resources against 2,000 billion yuan ($ 305 billion) in liabilities wiped out nearly 80% of the developer’s stock and bond prices, and an $ 80 million coupon payment is now looming next week .
Hong Kong fell to its lowest level since the start of the year.
A report from the US Department of Commerce showed on Thursday that retail sales rose unexpectedly in August, indicating that the US economic recovery is strengthening on positive trends in consumer spending.
Strong data pushed safe haven gold down nearly 3%.
However, the US labor market remains under pressure, with first jobless claims increasing slightly more than expected last week.
“The categories (of retail spending) that were strongest in August were in the categories of COVID beneficiaries,” wrote Ellen Zentner, chief economist of the United States at Morgan stanley (NYSE :).
“Now incorporating today’s retail sales release, we are raising our actual tracking (personal consumption spending) to + 1.9% and GDP to + 5.0%.”
The MSCI Global Equity Index fell 0.25% for the last time, after an all-time high on September 7. The MSCI’s largest Asia-Pacific stock index outside of Japan closed 0.83% lower.
European equities resisted the trend and European equities closed 0.44% higher.
The decrease of 63.07 points, or 0.18%, the loss of 6.95 points, or 0.16%, and the addition of 20.40 points, or 0.13%.
Markets remain focused on next week’s Federal Reserve meeting to see when the US central bank will start cutting stimulus measures, especially after the wave of US economic data released this week.
Data from the U.S. Department of Labor on Tuesday showed inflation calmed down and may have peaked, but inflation in Britain was the highest in years, data showed Wednesday.
The euro rose 0.441%, with the euro down 0.41% to $ 1.1767.
The yield on US10YT = RR increased 2.9 basis points to 1.333%.
fell 2.3% to $ 1,751.53 an ounce. The United States fell 2.27% to $ 1,751.70 an ounce.
Oil prices stabilized on Thursday after hitting a multi-week high a day earlier as the threat from Hurricane Nicholas to US Gulf crude production faded.
LCOc1 ended the session up 21 cents, or 0.3%, at $ 75.67 a barrel. Brent hit $ 76.13 on Wednesday, its highest level since July 30.