Business World

Wednesday 28 September 2016

Shares and oil down as China disappoints

Reuters

Published 09/03/2016 | 02:30

A Pakistani stockbroker talks on his phone during a trading session at the Pakistan Stock Exchange (PSE) in Karachi. Photo: AFP/Getty Images
A Pakistani stockbroker talks on his phone during a trading session at the Pakistan Stock Exchange (PSE) in Karachi. Photo: AFP/Getty Images

World stock markets fell yesterday after weak data from China reignited worries about a global economic slowdown and oil prices pulled back from recent strong gains.

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In Dublin the Iseq index closed down 0.62pc at 6,269.47. In a mixed day of trading in Dublin, oil explorer Providence Resources was among the big decliners, down 8.65pc at 19.31 cents a share, while Petroneft closed up 33pc at 4 cents. Bank of Ireland and Permanent TSB were up while AIB fell.

Global markets reacted after China's February trade performance was worse than economists expected, with exports tumbling the most in over six years, days after top leaders sought to reassure investors the outlook for world's second-largest economy remains solid.

"The data this morning has dampened sentiment more so than anything else at this point in terms of confirming some of the concerns regarding growth in China," said Ryan Larson, head of US equity trading at RBC Global Asset Management in Chicago.

Weighing on oil, Kuwait saying it would agree to an output freeze only if all major producers took part.

Brent crude futures were at $39.77 a barrel, down $1.07, or 2.6pc, while US West Texas Intermediate (WTI) futures were down $1.32, or 3.5pc, at $36.58.

The declines come a day after Brent and US oil settled at their highest levels since December.

In the stock market, energy and materials shares led the way lower. The S&P energy index .SPNY was down 3.2pc.

The Dow Jones industrial average was down 27.54 points, or 0.16pc, to 17,046.41; the S&P 500 had lost 11.4 points, or 0.57pc, to 1,990.36; and the Nasdaq Composite had dropped 26.66 points, or 0.57pc, to 4,681.60.

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