Market Update & Important Indicators:
The Dow Jones Industrial Average was set to close little changed Thursday, recovering from an earlier 184-point drop that followed weak Chinese trade data. Official data released Thursday showed Chinese exports fell 10% year-over-year last month, sparking concerns about the world's second-largest economy and global demand. Stocks around the globe fell and base metals such as copper tumbled. Investors moved to safe havens such as gold, U.S. government bonds and utility stocks. Stocks pared losses in afternoon trading, which some fund managers and traders attributed to investors stepping in to buy the dip. Material and energy stocks were among the biggest decliners in the U.S. on fears that weakness in China could damp demand for energy and raw materials. Big banks posted steep losses Thursday. Slowing growth in China could decelerate the U.S. Federal Reserve's plans for future interest-rate increases, some traders said, which may be a reason for Thursday's drop.
European stocks veered sharply lower, the selloff sparked after Chinese economic data highlighted worries about slowing growth in the world's second-largest economy. The Stoxx Europe 600 dropped 0.9% to end at 335.62. The regional benchmark suffered its lowest close since Aug. 3, according to FactSet data. Major indexes logged losses of 1% or more, with France's CAC 40 finishing 1.1% lower at 4,405.17, and Germany's DAX 30 closing down 1% at 10,414.07. Equities were mired in red after data showed Chinese exports fell by a more-than-expected 10% in September.
Asian shares were broadly lower Thursday, with Thailand's equities weighed down by persistent concerns about the health of the country's king. After markets closed, news broke that Thailand's King Bhumibol Adulyadej, the world's longest-serving monarch, died, heralding a potential new bout of instability. Thailand's SET index was last down 2.1%, after hitting an intraday decline of 6.9% in the previous session. The Nikkei Stock Average reversed early gains to close down 0.4%, hitting a six-day low as the yen changed direction and strengthened against the U.S. dollar after disappointing Chinese trade data helped dampen an uptick in the greenback. Korea's Kospi shed 0.9% and Hong Kong's Hang Seng Index was last off 1.5%. Elsewhere, data released Thursday showed that China's September exports were down sharply from a year earlier, as global demand for goods remained sluggish. Exports tumbled 10.0% from a year earlier in dollar terms, accelerating from a decline of 2.8% in August. Imports in September declined 1.9% from a year earlier, reversing a 1.05% increase in August. The Shanghai Composite Index shrugged off the data and closed up 0.1%.
Australian shares closed lower on Thursday, in step with broadly weaker Asian markets. The S&P/ASX 200 ended down 39 points, or 0.7%, at 5435.5. Resources companies were hit by falling commodity prices, which chipped away at their bottom line and dragged down the wider benchmark.
The London Metal Exchange's three-month copper contract closed down 2.1% at $4,712.00/t. Most base metals ended the day lower, with zinc down 1.0% at $2,227/t, tin down 1.6% at $19,532/t, nickel down 1.3% at $10,387/t and lead down 1.3% at $1,981/t. Aluminium bucked the trend, rising 0.5% to $1,689/t.
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Antipa Minerals Ltd (AZY), Vault Intelligence Ltd (VLT), Noxopharm Ltd (NOX), Gage Roads Brewing Co. (GRB), West African Resources (WAF), Cedar Woods Properties Ltd (CWP), Sino Gas & Energy Holdings Ltd (SEH), Salt Lake Potash Ltd (SO4), Kalina Power Ltd (KPO), Austal Limited (ASB), Agrimin Ltd (AMN), Stavely Minerals Ltd (SVY), MGC Pharmaceuticals Ltd (MXC), Vital Metals Ltd (VML), Tox Free Solutions Ltd (TOX), Swick Mining Services Ltd (SWK), Davenport Resources Ltd (DAV), Orthocell Ltd (OCC), BC Iron Limited (BCI), ALT Resources Ltd (ARS), Gascoyne Resources Ltd (GCY), Dacian Gold (DCN), Orocobre Ltd (ORE), Alchemy Resources Ltd (ALY)
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