MARKET SNAPSHOT: Dow Set For Triple-digit Loss As
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Posted On: 01/06/2016 6:44:21 AM
MARKET SNAPSHOT: Dow Set For Triple-digit Loss As China Roils Markets Again
Source: Dow Jones News
By Sara Sjolin, MarketWatch
North Korean H-bomb test weighs on mood
U.S. stock futures pointed to sharp losses at the open on Wednesday, after weak Chinese services data cemented fears of an economic slowdown in the world's second largest economy.
Futures for the Dow Jones Industrial Average slid 161 points, or 1%, to 16,920, while those for the S&P 500 index dropped 21.20 points, or 1.1%, to 1,990.50. Futures for the Nasdaq 100 index lost 48.25 points, or 1.1%, to 4,435.00.
"The dismal start to 2016 appears to have only intensified this Wednesday, with disappointing Chinese services data (sending the yuan to a 5-year low against the dollar even if the Shanghai Composite managed some counter-intuitive growth), a fresh 11-year low for Brent Crude and reports of a fourth nuclear test from North Korea," said Connor Campbell, financial analyst at Spreadex, in a note.
The purchasing managers index for China's services sector dropped to a 17-month low (http://www.marketwatch.com/story/chinas-service-activity-slips-adding-to-worries-2016-01-05) in December, further indicating growth in the world's second-largest economy is slowing down. Markets in Asia mainly fell in reaction, with the Hang Seng Index down 1%, but the Shanghai Composite Index bucked the trend with a rise of 2.3%.
The services data come after a disappointing reading on China's manufacturing sector on Monday, which triggered a market rout globally.
Also weighing on the investing mood was an announcement from North Korea that it had successfully detonated its first hydrogen bomb (http://www.marketwatch.com/story/north-korea-quake-raises-suspicions-of-nuke-test-2016-01-05), in its first test of a more powerful form of nuclear weapon than previously in its arsenal.
Later in the day, attention turns to the ADP private-employment report in the U.S., as well as the minutes from the Federal Reserve's December meeting.
(END) Dow Jones Newswires
January 06, 2016 04:17 ET (09:17 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Source: Dow Jones News
By Sara Sjolin, MarketWatch
North Korean H-bomb test weighs on mood
U.S. stock futures pointed to sharp losses at the open on Wednesday, after weak Chinese services data cemented fears of an economic slowdown in the world's second largest economy.
Futures for the Dow Jones Industrial Average slid 161 points, or 1%, to 16,920, while those for the S&P 500 index dropped 21.20 points, or 1.1%, to 1,990.50. Futures for the Nasdaq 100 index lost 48.25 points, or 1.1%, to 4,435.00.
"The dismal start to 2016 appears to have only intensified this Wednesday, with disappointing Chinese services data (sending the yuan to a 5-year low against the dollar even if the Shanghai Composite managed some counter-intuitive growth), a fresh 11-year low for Brent Crude and reports of a fourth nuclear test from North Korea," said Connor Campbell, financial analyst at Spreadex, in a note.
The purchasing managers index for China's services sector dropped to a 17-month low (http://www.marketwatch.com/story/chinas-service-activity-slips-adding-to-worries-2016-01-05) in December, further indicating growth in the world's second-largest economy is slowing down. Markets in Asia mainly fell in reaction, with the Hang Seng Index down 1%, but the Shanghai Composite Index bucked the trend with a rise of 2.3%.
The services data come after a disappointing reading on China's manufacturing sector on Monday, which triggered a market rout globally.
Also weighing on the investing mood was an announcement from North Korea that it had successfully detonated its first hydrogen bomb (http://www.marketwatch.com/story/north-korea-quake-raises-suspicions-of-nuke-test-2016-01-05), in its first test of a more powerful form of nuclear weapon than previously in its arsenal.
Later in the day, attention turns to the ADP private-employment report in the U.S., as well as the minutes from the Federal Reserve's December meeting.
(END) Dow Jones Newswires
January 06, 2016 04:17 ET (09:17 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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