(Friday Market Close) Weaker economic data from China were a mirror image to strong numbers from the United States, and as investors on Friday reflected on the two sets of figures it seems they focused more on the negative than the positive.
The losses on all three major U.S. indices were around 2% after retail sales data from China showed slower-than-expected growth and the weakest reading in five years. Numbers also showed industrial output there grew the slowest in three years, a potential sign of the effects of the ongoing trade war with the United States. Meanwhile, private sector business activity in Europe also fell, news that came just one day after the European Central Bank sliced its growth and inflation forecasts. European and Asian shares fell across the board.
The data from China contrasted with retail sales and industrial figures from the United States, where November U.S. retail sales growth of 0.2% that matched Wall Street analysts’ expectations and U.S. industrial production in November increased by 0.6%, ahead of the 0.3% fore
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As the weekend nears, U.S. markets came under pressure from the impact of weak data out of Europe and China. A decent U.S. retail sales number doesn’t appear to be much help early on.
US equity index futures were pointing to a higher open on continued optimism about a U.S.-China trade deal. The European Central Bank announced the end to its bond-buying program.
After yesterday’s rally attempt fizzled, U.S. stocks had a positive tone early Wednesday amid more hopes for trade progress with China. At the same time, Britain could be a factor today as Prime Minister May faces a possible no-confidence vote over Brexit.
A rally in tech helped bring the market out of the Monday doldrums, and some of that momentum appeared to carry into early Tuesday amid renewed optimism over trade talks with China.
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