Oct 7, 2014 7:35 AM
Global stocks lower on German, Asian growth woes
The Associated Press
LONDON (AP) Global stocks mostly fell on Tuesday after Germany saw its biggest monthly drop in industrial production in five years and the World Bank trimmed its Asian growth forecast.
KEEPING SCORE: Germany's DAX fell 0.7 percent to 9,139.52 and France's CAC-40 lost 1.1 percent to 4,241.60. Britain's FTSE 100 was down 0.6 percent at 6,525.72. Wall Street looked set for more declines, with futures for the Dow Jones industrial average and Standard & Poor's 500 down 0.3 percent in pre-market trading.
ASIA'S DAY: Tokyo's Nikkei 225 declined 0.7 percent to 15,783.83 while Hong Kong's Hang Seng gained 0.4 percent to 23,408.19. Seoul's Kospi was up 0.2 percent at 1,972.91. Sydney's S&P ASX 200 lost 0.2 percent to 5,284.20 and India's Sensex was off 0.6 percent at 26,404.29. Singapore, Taiwan, Jakarta and New Zealand also fell.
GERMAN INDUSTRY: Shares were weighed down after a report showed German industrial output fell 4 percent month-on-month in August. The decline was far larger than expected and follows a string of other disappointing economic indicators. It suggests Europe's economy will not recover as strongly as hoped in the third quarter, keeping a lid on the broader 18-country eurozone.
ANALYST TAKE: "The envisaged rebound in the third quarter is now at risk," said Andreas Rees, chief German economist at UniCredit Research.
WORLD BANK: Trading sentiment had been dented earlier after the World Bank trimmed its growth forecast for developing East Asian economies to 6.9 percent from an outlook of 7.1 percent in April. The bank said China, the region's biggest economy, should grow by 7.2 percent, declining to 7.5 percent next year, as the government tries to shift from reliance on trade and investment to growth driven by domestic consumption.
LOOKING AHEAD: The U.S. Federal Reserve is due to release notes on its latest meeting, and investors will be looking for signs of when the Fed might raise interest rates a move that for now is not expected until mid-2015.
ENERGY: Benchmark U.S. crude fell 7 cents to $90.27 per barrel in electronic trading on the New York Mercantile Exchange. The contract gained 60 cents on Monday to close at $90.34.
CURRENCIES: The dollar declined to 108.56 yen from Monday's 108.82. The euro edged down to $1.2599 from the previous session's $1.2653.