Wall Street slumps 2% at the open on US-China trade concerns

2018-12-06 16:05:23 GMT (Economies.com)
Wall Street slumps 2% at the open on US-China trade concerns

US stock indices opened the third session of the week sharply lower after closing yesterday in honor of late President George H.W. Bush, as market doubts grow over the latest US-China trade truce reached at the G20 Summit. 

 

The doubts surged in particular after the Canadian arrest of Huawei Chief Financial Arrest in order to send her to the US for suspicion of violating economic sanctions on Iran. 

 

US Data 

 

The US private sector added 179 thousand in November, missing estimates of 195K, and compared to 225K in October, revised from 227K. 

 

US productivity rose 2.3% as expected, up from 0.9% in the second quarter, while labor costs rose 0.9%, slowing down from 1% in the second quarter. 

 

US trade deficit widened to $55.5 billion from $54.6 in September, missing estimates of $55.2 billion, while unemployment claims fell by 4 thousand in the week ending December 1 to 231K. 

 

Continuing claims for the week ending November 24 fell 74 thousand to 1.631 million.

 

The US services PMI rose to 60.7 in November from 60.3 in October, besting estimates of 59.1. 

 

Two thirds of American GDP relies on services, hence the vital importance of services PMIs to markets. 

 

Finally, factory orders fell 2.1% in October, compared to a 0.2% increase in September, and missing estimates of a 1.9% increase. 

 

Stock Performance 

 

As of 03:29 GMT, Standard and Poor's 500 shed 1.63%, or 43.96 points to 2,656.10, while Dow Jones slumped 1.78%, or 445.35 points to 24,581.72. 

 

Tech-heavy NASDAQ swooned 1.33%, or 95.38 points to 7,063.04. 

 
 
 
  Symbol Last Change Chg.%
1.1303
-0.0094
0.8265%
1.2575
-0.0128
1.0112%
14.608
-0.012
0.082%
51.068
-1.177
2.254%
60.16
-1.26
2.05%
1239.680
-8.360
0.670%
 
 
US
 
Europe
 
Asia