Global shares slump as Chinese growth data disappoints

Highlights:

• • USA
    The Dow Jones rose by 1.09% or 382.20 points, standing at 35,294.76. Meanwhile, the selective S&P 500 advanced by 0.75% or 33.11 points, to 4,471.37. The Nasdaq market gained 0.50% or 73.91 integers, to 14,897.34.
  • ASIA
    The Nikkei fell by 0.15% or 43.17 points, to 29,025.46.
    The Kospi closed with a drop of 0.28% or 8.38 points at 3006.68.
    The Hang Seng closed with an increase of 0.31% to 25,409.75. 
  • EUROPE
    The EuroStoxx 50 index was trading with a loss of 0.83%. Meanwhile, the FTSEurofirst 300 shed 0.48% and the Stoxx 600 yielded 0.54%.

Wall Street rose due to the banks’ good results 

Wall Street closed this Friday in green, encouraged by the good quarterly results of the large US banks.

The Dow Jones rose by 1.09% or 382.20 points, standing at 35,294.76. 

Meanwhile, the selective S&P 500 advanced by 0.75% or 33.11 points, to 4,471.37. The Nasdaq market gained 0.50% or 73.91 integers, to 14,897.34.

The Dow Jones has gained 1.1% for the week, the S&P 500 added 1.8%, and the Nasdaq increased by 2.2%. They recorded their best figures since this summer.

The New York stock market ended the week with good spirits after the positive results of the main US banks. Goldman Sachs presented its accounts, which rose by 3.88%. JPMorgan advanced by 1.92%, Bank of America climbed by 2.88%, Citigroup gained 2.15%. Meanwhile, Morgan Stanley grew by 1.09%, and Wells Fargo surged by 6.84%.

The financial sector expanded by 1.51%. It posted the second-best gain after the non-essential goods sector, adding 1.76%. The industrial sector followed them with a rise of 0.96%, and the technological sector stood out with an advance of 0.79%.

Investors also reacted with purchases to an unexpected increase of 0.7% in sales in the US retail sector in September. It contributed to the bullish day of the market.

Among the 30 companies listed on the Dow Jones, Goldman Sachs led the advances. It was followed by Visa, American Express, and Caterpillar.

In contrast, Walgreens, McDonald’s, and Cisco posted significant losses.

 

The Nikkei fell for the first time in three days

The Nikkei Stock Average started at 29,093 yen this week. 

Moreover, the Nikkei volatility index rose by 3.61% to 20.96. 

Today’s Tokyo stock market has been pushed a little by selling, and there was no movement. Under these circumstances, concerns such as high crude oil prices, rising long-term US interest rates, and uncertainty about the Chinese economy were affecting the market. Amid rising volatility, it has been challenging to change the sentiment. 

The Nikkei fell by 0.15% or 43.17 points, to 29,025.46. Meanwhile, the Topix slid by 0.23% or 4.70 points to 2,019.23.

The pharmaceutical sector, agriculture, fisheries, and the precision instruments sectors posted the most significant losses.

Lasertec accumulated the largest trading volume of the day again and dropped by 2.09%. The semiconductor maker saw sharp gains last week due to Taiwanese chipmaker TSMC’s plans in Japan.

The telecommunications giant Softbank was second by the number of transactions, cutting 0.82%. 

Meanwhile, the shipping company Nippon Yusen ended the day with an increase of 0.66%. At the same time, the textile group Fast Retailing expanded by 0.96%.

Tokyo Electron registered a rise of 0.92%, while tech multinational company Sony lost 1.62%.

The Kospi declined amid slowing economic growth in China

The Kospi index closed slightly lower. Although negative news came out that China’s economic growth was not as good as expected, US retail sales limited the further slump in the stock index.

The Kospi closed with a drop of 0.28% or 8.38 points at 3006.68. 

Individuals net bought a total of 417.3 billion won, while foreigners bought 38.2 billion won. On the other hand, institutions switched to net selling and sold 480.8 billion won in one day.

Individuals bought a lot of shares in Samsung Electronics, the company with the largest market capitalization. It was estimated that a total of 535 billion won was net purchased in one day. Samsung Electronics ended up trading at 70,200 won, with an increase of 0.14% from the previous day. In addition, POSCO, DPC, SK Telecom, and LG Electronics were ranked at the top of the list of individual net purchases.

Institutional investors, on the other hand, sold Samsung Electronics the most. Daily net sales reached 147.4 billion won. 

It is the largest net selling amount in five trading days. In addition, the institution sold a lot of secondary battery-related stocks such as Samsung SDI, LG Chem, SK Hynix, LG Electronics, Hyundai Heavy Industries, and Celltrion.

 

Hang Seng closed higher despite weak Chinese data

The Hong Kong stock indexes opened slightly higher in the morning and moved lower in a while. They rebounded to close with an increase of 0.31% to 25,409.75. 

The slowdown in the Chinese economy created an initial drop, which turned into a rally by some industrial firms.

According to data by Chinese authorities, the country’s GDP grew by 4.9% year-on-year in the third quarter. The rate is slightly below the number expected by analysts. Besides, it’s much lower than 18.3% and 7.9% of the two previous periods.

On the other hand, the Hang Seng China Enterprises gained 0.06%.

The sub-indices ended mixed. Real Estate slipped by 0.48% and Finance cut by 0.34%. Meanwhile. Services advanced by 0.42%, and Commerce and Industry added 0.85%.

Textile firms increased, Anta Sports gained 4.45%. Macau casino operators such as Sands China climbed by 3.59%. At the same time, technology companies such as Wuxi Biologics surged by 5.03%.

Digital giants had a mixed session. Alibaba increased by 0.68%, and Tencent added 0.28%. Meanwhile, Meituan slipped by 0.14%.

Among the real estate companies, Country Garden expanded by 1.95%. In contrast, Henderson Land shed 1.7%, and Wharf REIC dipped by 2.58%.

In the financial department, insurance company Ping An slid by 1.13%. 

China Merchants Bank lost 1.96%. Those losses overshadowed the rebound of the banking giant HSBC by 0.33%.

The Chinese state oil companies had a positive day. Petrochina gained 1.49%, Cnooc advanced by 1.38%, and Sinopec added 1.01%.

 

Chinese disappointment weighed on European stocks

The main European stock markets slipped at the start of the session on Monday. Chinese figures encouraged profit-taking after the sustained increase registered last week. 

The EuroStoxx 50 index was trading with a loss of 0.83%. Meanwhile, the FTSEurofirst 300 shed 0.48%, and the Stoxx 600 yielded 0.54%.