Stocks fell on Friday as data out of China, the euro zone and the United States put a lid on expectations for a sustained global rebound, with traders already worried about a delay in U.S. fiscal stimulus, APA reports quoting Reuters.
A review of the U.S.-China trade deal initially slated for Saturday will be delayed due to scheduling issues and no new date has been agreed upon, according to sources familiar with the plans.
European shares were weighed further by a hit to travel stocks after Britain added more European countries, including France, to its quarantine list amid the coronavirus pandemic.
On Wall Street, a slowdown in retail sales growth last month and concern over further reluctance by consumers weighed on stocks, but the S&P 500 ended nearly unchanged, not far from record highs.
“The economy remains on life support and Congress going on recess is bad news for large parts of the economy,” Edward Moya, New York-based senior market analyst at OANDA, wrote in an afternoon note. “Stocks will not selloff due to the extraordinary policy support that central banks and governments have put in place.”
The Dow Jones Industrial Average rose 34.3 points, or 0.12%, to 27,931.02, the S&P 500 lost 0.58 points, or 0.02%, to 3,372.85 and the Nasdaq Composite dropped 23.20 points, or 0.21%, to 11,019.30.
MSCI’s world index shed 0.25%, drifting further from all-time highs touched in February. The index has still rallied close to 50% from March’s trough despite global economic consequences of fighting the COVID-19 pandemic.
The euro zone reported the biggest drop it ever recorded in employment in the second quarter. Data also confirmed a record fall in gross domestic product last quarter and a widening in the euro zone’s trade surplus with the rest of the world.
Data showing a slower-than-expected rise in Chinese industrial production and a surprise fall in retail sales put Asian shares on the defensive.
Yields on benchmark U.S. Treasuries dipped but remained elevated after an auction of 30-year bonds on Thursday met weak demand. The 30-year yield rose every day this week.