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Markets Wrap: Stocks drop with yuan as China economy weakens

December 14, 2018/ 12:35

Moscow. Asian stocks fell with U.S. equity futures as caution returned to global markets, with data showing continued weakness in China’s economy. The yuan dropped with the Aussie, while the yen edged higher with Treasuries.

Shares in Hong Kong and Japan bore the brunt of declines as equities fell across the region, though some losses were pared as the session progressed, told Dloomberg. Futures on the S&P 500 Index sank and the yuan dipped as a slew of Chinese economic data reinforced worries about the country’s slowdown. Japanese bonds ticked higher even as the central bank pared purchases at a regular operation for the first time since June, in the wake of the recent slide in yields.

Sentiment remains fragile as the week draws to a close, one in which investors had initially taken some comfort from encouraging signs in trade tensions. Growth concerns were back in focus after European Central Bank President Mario Draghi said economic risks were moving to the downside, while in China retail sales and industrial production figures for November fell short of estimates.

There’s also uncertainty over the next steps for Brexit. The pound fluctuated amid reports European leaders are set to discuss issuing a declaration on the Irish backstop, which may help prospects for the Brexit deal in Britain’s fractious Parliament.

Elsewhere, West Texas crude dipped even after Saudi Arabia was said to be planning to slash exports to the U.S. in the coming weeks.

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