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Home / Business / US equity futures fall in shortened session as Chinese data intensifies fears of global slowdown

US equity futures fall in shortened session as Chinese data intensifies fears of global slowdown



US. Stock futures fell in a shortened session on Monday as the weakest Chinese growth data in three decades weighed on investors and the International Monetary Fund lowered its outlook for global expansion, citing trade issues.

Regular trading for US markets will be closed on Monday honor of Martin Luther King Jr. Day. Markets will resume the week on Tuesday.

How did the benchmarks evolve?

Futures on Dow Jones Industrial Average

YMH9, -0.44%

fell 1

50 points or 0.6% to 24,538 while the S & P 500 futures value was higher

ESH9, -0.43%

fell 15.10 points, or 0.6%, to 2.656,50. Nasdaq-100

NQH9, -0.54%

fell 48.50 points or 0.7% to 6,743.

The shares closed on Friday for the fourth consecutive session. The Dow Jones Industrial Average

DJIA, + 1.38%

surged 336.25 points, or 1.4%, ending at 24,706.35 for a 3% weekly gain. The S & P 500 index

SPX, + 1.32%

rose 1.3% to 2,670.71, an increase of 2.9% for the week. The Nasdaq composite

COMP, + 1.03%

increased 1% to 7,157.23, closing the week at 2.7%.

Driving the Markets

China's gross domestic product for 2018 rose 6.6%, the slowest annual pace the country has recorded since 1990. The downturn intensified in the fourth quarter of last year. Growth increased by 6.4% on an annualized basis. The trade dispute with the US compounded the country's difficulties as some exporters were forced to cut jobs.

Read: China's private equity king is "hopeful for the best, ready for the worst".

The US and China remain involved in intellectual property theft for decades over a key related to the latter's allegations. Bloomberg News reported that little progress has been made on the sensitive issue, although both sides met in January. Meanwhile, President Donald Trump said on Twitter on Saturday that last week's stock rally reports that the US would lower tariffs on China were incorrect, even though he said the talks were "very good."

The International Monetary Fund said Monday it expects global growth of 3.5% this year from 3.7% in 2018 and from 3.7% forecast for 2019 in October, citing worldwide trade tensions. The fund announced its forecasts at the World Economic Forum in Davos (Switzerland) and left its forecast for US growth unchanged at 2.5% this year.

Partial government stalemate lasted until Monday 30th, and there was little sign of easing the impasse. The Democrats rejected Trump's recent proposal to temporarily extend protection for young immigrants who were illegally brought into the country for $ 5.7 billion for his border wall.

The stagnation has led to a backlog of economic data. Only a few reports were due this week, including existing home sales, weekly jobless claims, and Markit Manufacturing and Services Purchasing Manager index data.

Opinion: These three leading economic indicators show that there is no recession.

The result will also be a focus for investors in a busy week. Johnson & Johnson

JNJ, + 1.24%

IBM Corp.

IBM, + 1.33%

Advanced Micro Devices Inc.

AMD, + 2.57%

and Ford Motor Co.

F, + 2.63%

IBM Revenues: Emerging tech companies are likely to account for half of revenue when revenue declines. is ready to answer the doubts on Wall Street, but does not expect a miracle

What do strategists say?

"This is still a decent expansion. The economy grew by 6.4% in the fourth quarter. However, it raises concerns about a slowdown that prompted a series of measures by the Chinese authorities this month to tackle the worst. The impact of some sharp economic weakness has pushed global investors higher, "said Michael Hewson, Chief Market Analyst at CMC Markets UK, in a message to customers. Hewson was referring to the Chinese growth data.

How are other markets traded?

The markets in Asia saw a positive meeting, although profits were mitigated by Chinese data. The Shanghai Composite Index

SHCOMP, + 0.56%

closed 0.5%. In Europe, the Stoxx Europe 600

SXXP, -0.37%

was down 0.2%.

crude oil

CLG9, + 0.43%

rose slightly as gold rose

GCG9, -0.24%

fell 0.2% to $ 1,279.70 per ounce and US $

DXY, + 0.01%

was unchanged.

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