Stocks and Commodities Slump After Chinese Data Disappoints
U.S. stock index futures slid in the pre-market session, and the commodities and commodity-related currencies are experiencing a great deal of pressure, stunned after China reported lower-than-expected Q1 GDP growth.
China's Q1 GDP rose 7.7%, below the 8% gain forecast by economists surveyed by both the Dow Jones Newswires and Reuters, and below the 7.9% growth China posted in Q4. Other date released by China showed March industrial production increased 8.9% from the year-earlier period, missing the Dow Jones Newswires forecast for a 10% gain. The growth was the weakest in more than a year.
With China the major driver of commodities prices, this data has hit the commodities sector hard. Gold futures fell as low as $1,384.60 in European trading hours, crossing below the $1,400 support point. Currently, futures are off about 6%, at$1,407.60 an ounce. In other precious metals, silver is down 8.32% and platinum 2.72%.
Among the more "economically sensitive" commodities, copper prices have shed 3.5%, wiping out last week's gains, while oil prices are also experiencing a sell-off and are down 1.79%.
The pressure has also spilled over into the growth-linked currencies, often dubbed the "commodity currencies" such as the euro and the Australian dollar. The yen, meanwhile, a safe have haven currency is posting gains compared to the Australian dollar and euro.
U.S. PRE-MARKET INDICATORS
-Dow Jones Industrial down 0.28%
-S&P 500 futures down 0.28%
-Nasdaq 100 futures down 0.24%
-Nasdaq-100 Pre-Market Indicator down 0.29%
Nikkei down 1.55%
Hang Seng down 1.43%
Shanghai Composite down 1.13%
FTSE-100 down 0.85%
DAX-30 down 0.66%
PRE-MARKET SECTOR WATCH
(-) Large cap tech: lower
(-) Chip stocks: lower
(-) Software stocks: lower
(-) Hardware stocks: lower
(-) Internet stocks: lower
(-) Drug stocks: lower
(-) Financial stocks: lower
(-) Retail stocks: lower
(-) Industrial stocks: lower
(+,-) Airlines: mixed
(-) Autos: lower
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