On 13 October, 2015 – European markets retreated on weak economic data

Stocks were mostly lower after disappointing September merchandise trade data from China.
United States
US stocks moved lower Tuesday as investors assessed the latest deal news and company earnings reports. The Dow Jones industrials declined 0.3%, the S&P lost 0.7% and the Nasdaq dropped 0.9%. Investors were disappointed with the trade data from China. Exports declined at a moderate pace as the devaluation of the yuan helped it from falling sharply amid weak global demand. At the same time, imports plunged due to a drop in commodity prices and subdued domestic demand.
Ryder System declined after the company cut its earnings forecast for the third quarter. The trucking and logistics company blamed lower than forecast growth at a unit that provides services to companies that own and operate truck fleets. Twitter’s stock advanced after the company announced that it was laying off about 8% of its work force, signaling its chief executive’s resolve to cut costs while the company struggles to make money. The social media company has not turned a profit in its nine year history.
SABMiller was up after the company accepted in principle a takeover by market leader Anheuser-Busch InBev. Molson Coors, the owner of Coors, surged. If Anheuser-Busch InBev completes the deal to buy SABMiller, Molson Coors may get an opportunity to buy full ownership of its MillerCoors joint venture, which sells beers including Miller Lite, Coors Light and Blue Moon in the United States.
Intel reported a 6.3% decline in quarterly profit, weighed down by continued weak demand for chips used in personal computers. The company’s net income declined to US$3.11 billion or 64 US cents per share for the third quarter ended September 26 from US$3.32 billion or 66 US cents per share a year earlier. Net revenue fell to US$14.47 billion from US$14.55 billion.
JPMorgan Chase reported a 22.3 percent rise in quarterly profit as lower costs and a smaller provision for credit losses made up for weaker trading revenue. JPMorgan said its net income rose to US$6.80 billion from US$5.57 billion in the year earlier period. On a per share basis, the bank earned US$1.68 in the third quarter ended September 30, up from US$1.35 a year earlier.
Gold at the afternoon London fixing was up 30 US cents to US$1,165.20. Copper futures were down 1.3% to US$2.38. WTI spot crude was down 61 US cents to US$46.49. Dated Brent spot crude was down 96 US cents to US$48.90. The US dollar was up against the pound and the Canadian and Australian dollars. However, it declined against the euro, yen and the Swiss franc. The Dollar Index was down 0.2%. The yield on US Treasury 30 year bond was down 4 basis points to 2.88% while the yield on the 10 year note declined 5 basis points to 2.04%.
Europe
Stocks retreated Tuesday thanks to disappointing September Chinese merchandise trade data. The weak data revived concerns about fading growth in China. Commodity driven sectors like mining, gold and energy stocks were under pressure. Weak economic data from the Eurozone also contributed to the negative mood. The FTSE was down 0.5%, the CAC declined 1.0%, the DAX lost 0.9% and the SMI was 0.6% lower.
SAP climbed after the business software maker reported higher operating profit for the third quarter on its strength in mature markets. Volkswagen declined after it announced that investments are to be reduced by about one billion euros per year. Leoni plunged after it announced that it expects to miss its earnings target for the year. RWE and E.ON weakened. In Paris, both LVMH and Kering retreated. In London, Royal Mail declined after the government decided to sell its remaining 14% stake in the company. SAB Miller surged after agreeing to the terms for a combination with Anheuser Busch InBev. Bellway was up after it reported increased full-year results.
Germany’s economic confidence dropped to a one-year low in October, while U.K. inflation turned negative again in September. Germany’s ZEW survey’s investor confidence index fell more than expected to 1.9 from 12.1 in September. The seventh consecutive decline took the score to the lowest since October 2014. UK inflation turned negative again in September and factory gate prices continued to decline strengthening the assessment that interest rates are unlikely to be raised anytime soon. Consumer prices dropped 0.1% on the year in September, after staying flat in August.
Asia Pacific
Asian stocks retreated after a sharp drop in oil prices on Monday and disappointing Chinese September merchandise trade data. However, the Shanghai Composite edged up 0.2% showing little reaction to the latest declines in both exports and imports from a year ago. Exports in US dollar terms dropped 3.7% on the year in September, beating expectations for a 6.0% decline after a 5.5% drop in August. Imports tumbled 20.4% on the year compared with forecasts for a decline of 15.9% after dropping 13.8% in the previous month. That left a trade surplus of US$60.34 billion for the month. The Hang Seng lost 0.6%.
The Nikkei retreated 1.1%. Honda Motor and Panasonic retreated as the safe haven yen edged higher against the US dollar. Fast Retailing, robot maker Fanuc and mobile carrier Softbank were down. Inpex declined after an overnight tumble in global oil prices, while ANA Holdings and Japan Airlines advanced. Sharp soared on news that state backed investment fund Innovation Network Corp of Japan may invest about ¥200 billion in the company.
Both the S&P/ASX and All Ordinaries declined 0.6%. Miners were down while banks were mixed. The Kospi slipped 0.1% as sluggish Chinese imports data raised concerns over future demand from China. The Sensex slipped 0.2%.
Global Stock Market Recap

Please remember, the value of investments and the income from them can do down as well as up. Funds that invest in overseas markets may be subject to currency fluctuations. Investments in small and emerging markets can be more volatile than other overseas markets. Reference in this document to specific securities should not be construed as a recommendation to buy or sell these securities, but is included for the purposes of illustration only.
Looking forward*
Japan posts September producer prices. China reports September consumer and producer price indices. India releases September WPI while France and Italy release September consumer price indices. The UK reports September labour market data. The Eurozone releases August industrial output. In the US, September producer prices and retail sales will be released along with August business inventories. The Federal Reserve publishes the Beige Book in preparation for the upcoming FOMC meeting on October 27 and 28.
*Note — all releases are listed in local time.