Global stocks fluctuate amid mixed economic data

10/05/2016 05:08 AST

Global stocks fluctuated as investors assessed a mixed batch of economic data, with European shares rallying after a German factory orders report and industrial metals dragged lower by weak Chinese trade figures.

Health-care and consumer staples companies led the S&P 500, offsetting declines by energy and raw-material shares.

Oil slid after Saudi Arabian oil minister’s pledged to maintain the country’s policy of near-record output. Copper fell to its lowest in almost a month after imports into China slipped from a record, while iron ore tumbled following an increase in stockpiles at Chinese ports.

Global equities lost ground over the past two weeks as economic data painted a subdued picture of growth in the world economy amid mixed corporate earnings.

Chinese trade figures released over the weekend showed exports fell in dollar terms in April and imports dropped for the 18th month in a row.

That came after US jobs figures on Friday that were weaker than estimated, prompting traders to speculate a slower pace of policy tightening by the Federal Reserve.

“It’s risk on after people had been too negative, and the unemployment numbers on Friday were not as bad as people had anticipated,” Andrew Brenner, head of international fixed income at National Alliance Capital Markets in New York, said by phone.”Commodities got a little bit extended over the last couple of weeks.

Sentiment is so negative that the best you’re going to get is neutral.” Stocks The MSCI All-Country World Index and the S&P 500 were little changed at 10:27 a.m.

New York time.

US investors awaited the final batch of earnings reports this season, after the benchmark equity gauge has fallen 2.2 per cent since its April 20 peak.

Analysts have moderated their predictions for a decline in first-quarter earnings to 7.4 per cent, from 9.5 per cent at the start of April.

Results from Allergan Plc, Walt Disney and Macy’s are due later this week.

Specialty-pharmaceuticals maker Allergan jumped 5.5 per cent to halt a four-day slump, as health-care companies rebounded from their worst two weeks in almost three months.

Tyson Foods led consumer staples shares higher after the largest US meat producer raised its fiscal full-year profit forecast.

Meanwhile, LendingClub tumbled 25 per cent after saying Chief Executive Officer Renaud Laplanche has resigned, following an internal review of sales of $22 million in loans to a single investor.

The Gulf Today