Global Economic Concerns May Lead To Pullback On Wall Street

[ADVFN]( [WorldDaily Markets Bulletin]( [Daily world financial news]( [Tuesday, 22 January 2019 10:16:33]( [Monitor]( [Quote]( [Charts]( [News]( [Toplists]( [Boards]( Kansas Man turns $10,000 into $8 million Click the button below to join Motley Fool Stock Advisor and learn about "millionaire maker" alert today. [Click Here]( --------------------------------------------------------------- US Market NYSE [NYSE]( AMEX [AMEX]( Dow Jones [Dow Jones]( Nasdaq [Nasdaq]( The major U.S. index futures are pointing to a lower opening on Tuesday, with stocks likely to give back ground following the rally seen last week. Concerns about the global economy are likely to weigh on the markets after the International Monetary Fund said the global expansion is weakening at a rate that is somewhat faster than expected. The IMF lowered its forecasts for global economic growth to 3.5 percent in 2019 and 3.6 percent in 2020, 0.2 and 0.1 percentage points below last October?s projections. An escalation of trade tensions and a worsening of financial conditions are key sources of risk to the outlook, the IMF said. The IMF also expressed concerns about a bigger than expected slowdown in Chinese growth, the Brexit cliffhanger, and the ongoing U.S. government shutdown. In remarks at the World Economic Forum in Davos, Switzerland, on Monday, IMF Managing Director Christine Lagarde noted risks to the global economy are increasingly intertwined. ?Think of how higher tariffs and rising uncertainty over future trade policy fed into lower asset prices and higher market volatility,? Lagarde said. ?This in turn contributed to tightening financial conditions, including for advanced economies, which is a major risk factor in a world of high debt burdens. ? ?Does that mean that a global recession is around the corner? The answer is ?no,?? she added. ?But the risk of a sharper decline in global growth has certainly increased.? Extending the upward trend seen over the past several sessions, stocks moved sharply higher during the trading day on Friday. With the continued advance, the major averages reached their best closing levels in well over a month. The major averages ended the day firmly in positive territory. The Dow soared 336.25 points or 1.4 percent to 24,706.35, the Nasdaq jumped 72.76 points or 1 percent to 7,157.23 and the S&P 500 surged up 34.75 points or 1.3 percent to 2,670.71. Reflecting the four-day winning streak, the major averages moved substantially higher for the week. The Dow spiked by 3 percent, while the Nasdaq and the S&P 500 shot up by 2.7 percent and 2.9 percent, respectively. The rally on Wall Street comes as traders continued to express optimism about trade talks between the U.S. and China. Adding to the positive sentiment, a report from Bloomberg News said China has offered to go on a six-year buying spree to ramp up imports from the U.S. An official familiar with the negotiations told Bloomberg that China would seek to reduce its trade surplus with the U.S. by increasing annual goods imports by a combined value of more than $1 trillion. The Bloomberg report came on the heels of yesterday's Wall Street Journal report indicating the U.S. is considering lifting tariffs on Chinese goods. The Wall Street Journal report on Thursday said the U.S. is weighing easing tariffs in an effort to calm markets and give China an incentive to make deeper concessions. People close to internal deliberations told the Journal that Treasury Secretary Steven Mnuchin proposed the idea of lifting some or all tariffs in a series of strategy meetings. The people said the aim of easing the tariffs is to advance trade talks and win China's support for longer-term reforms. The positive news on trade overshadowed a report from the University of Michigan showing a substantial deterioration in U.S. consumer sentiment in the month of January. The preliminary report said the consumer sentiment index plummeted to 90.7 in January from the final December reading of 98.3. Economists had expected the index to dip to 97.0. With the much steeper than expected drop, the consumer sentiment index tumbled to its lowest level since hitting 87.2 in October of 2016. "Consumer sentiment declined in early January to its lowest level since Trump was elected," said Surveys of Consumers chief economist Richard Curtin. "The decline was primarily focused on prospects for the domestic economy, with the year-ahead outlook for the national economy judged the worst since mid 2014." He added, "The loss was due to a host of issues including the partial government shutdown, the impact of tariffs, instabilities in financial markets, the global slowdown, and the lack of clarity about monetary policies." Meanwhile, a separate report from the Federal Reserve showed industrial production increased by slightly more than expected in December, as jumps in manufacturing and mining output more than offset a sharp pullback in utilities output. The Fed said industrial production rose by 0.3 percent in December after climbing by a downwardly revised 0.4 percent in November. Economists had expected industrial production to edge up by 0.2 percent compared to the 0.6 percent advance originally reported for the previous month. Oil service stocks moved sharply higher over the course of the trading session, driving the Philadelphia Oil Service Index up by 3.8 percent to its best intraday level in well over a month. The rally by oil service stocks came amid a significant increase by the price of crude oil. Substantial strength was also visible among transportation stocks, as reflected by the 2.6 percent spike by the Dow Jones Transportation Average. Trucking company J.B. Hunt Transport Services (JBHT) posted a standout gain after reporting better than expected fourth quarter results. Computer hardware stocks also showed a significant move to the upside, resulting in a 2.6 percent jump by the NYSE Arca Computer Hardware Index. Semiconductor, tobacco, banking, and networking stocks also moved notably higher, reflecting broad based buying interest. --------------------------------------------------------------- Are you looking to step up your trading strategy? The 3 simple patterns that every trader should know. [READ NOW]( --------------------------------------------------------------- U.S. Economic Reports CADUSD [CADUSD]( Oil [Oil]( Gold [Gold]( Allbanc [Allbanc]( At 10 am ET, the National Association of Realtors is scheduled to release its report on existing home sales in the month of December. Economists expect existing home sales to slump by 1.3 percent to an annual rate of 5.25 million in December after unexpectedly jumping by 1.9 percent to a rate of 5.32 million in November. --------------------------------------------------------------- Eccentric Millionaire Reveals His Secret $1.8 Million Cryptocurrency Script [Click here]( --------------------------------------------------------------- Stocks in Focus Shares of Stanley Black & Decker (SWK) are moving notably lower in pre-market trading after the tool maker reported better than expected fourth quarter results but forecast 2019 earnings below analyst estimates. Oil services giant Halliburton (HAL) may also see initial weakness after reporting fourth quarter earnings that exceeded estimates but disappointing North American revenues. Shares of Johnson & Johnson (JNJ) could also move to the downside after the healthcare giant reported stronger than expected fourth quarter results but forecast slower revenue growth in 2019. Online pet pharmacy PetMed Express (PETS) may also come under pressure after reporting fiscal third quarter results that came in below expectations. On the other hand, shares of Under Armour (UAA) are seeing pre-market strength after Goldman Sachs upgraded its rating on the athletic apparel maker?s stock to Buy from Neutral. --------------------------------------------------------------- Become a Shareholder in High Times The Original Voice of Cannabis. Join our investor community and help shape the emerging cannabis industry. [Click Here]( --------------------------------------------------------------- Europe European stocks have moved lower on Tuesday as global growth worries resurface and U.K. Prime Minister Theresa May's much-anticipated "plan B" on Brexit looked like a tweaked version of her Plan A, which suffered a historic parliamentary defeat last week. The IMF once again cut its global growth forecasts, citing the threat of a trade war, stalled Brexit talks and slowing Chinese growth. While the U.K.?s FTSE 100 Index has dropped by 0.5 percent, the German DAX Index and the French CAC 40 Index are both down by 0.4 percent. UBS Group has tumbled after the Swiss banking giant warned on client activity in the first quarter, despite reporting a profit in its fourth quarter compared to the prior year's hefty loss. British online trading platform IG Group has also slumped after reporting declines in first-half profit and revenues. Rémy Cointreau has also dropped. The wine and spirits company confirmed its full-year operating profit outlook after reporting higher sales of 919.4 million euros in the first nine months of the year. On the other hand, low-cost airline EasyJet has soared. The company's expectations for full-year headline profit before tax remain broadly in line with current market expectations. German luxury fashion brand Hugo Boss has also jumped after reporting higher sales in its fourth quarter. In economic news, the U.K's official jobless rate unexpectedly ticked down to 4.0 percent in November, while the claimant count change showed a bigger than expected increase. --------------------------------------------------------------- Get your free PlusOne Coin. Plus One Coin (PLUS1) is a social media cryptocurrency where users can up-vote content and other social media. Claim it free from sponsored faucets [here..]( --------------------------------------------------------------- Asia USDCAD [USDCAD]( USDEUR [USDEUR]( USDGBP [USDGBP]( USDJPY [USDJPY]( Asian stocks fell broadly on Tuesday amid concerns about the global economic outlook after the International Monetary Fund, or IMF, slashed its world economic forecast, citing a range of triggers beyond escalating trade tensions. These potential triggers include a "no-deal" Brexit for the U.K. and a deeper than envisaged slowdown in China. The IMF now projects a 3.5 percent growth rate worldwide for 2019 and 3.6 percent for 2020, down 0.2 and 0.1 percentage points, respectively, from its last forecasts in October. Brexit worries also lingered as British Prime Minister Theresa May offered nothing new to break the political deadlock just 10 weeks before Britain leaves the EU. China's Shanghai Composite Index tumbled 30.81 points or 1.2 percent to 2,579.70, while Hong Kong's Hang Seng Index closed at 27,005.45, down 191.09 points or 0.7 percent. Japanese shares gave up early gains to close lower as the yen strengthened on worries over slowing global growth, stalled Brexit talks and the ongoing U.S. government shutdown. The benchmark Nikkei 225 Index declined 96.42 points or 0.5 percent to 20,622.91, and the broader Topix closed 0.6 percent lower at 1,556.43. Fanuc, Komatsu and Panasonic declined 2-3 percent. Zozo slumped 6.4 percent after reports that a number of shops were withdrawing from its online fashion shopping site. Australian markets retreated after mining giant BHP reported a drop in second quarter iron ore production and said it would take a $600 million hit due to production disruptions at its copper and iron ore operations. The benchmark S&P/ASX 200 Index dropped 31.60 points or 0.5 percent to 5,858.80, while the broader All Ordinaries Index ended down 29.20 points or 0.5 percent at 5,924.30. BHP shares dropped 1.3 percent, and rivals Rio Tinto and Fortescue Metals Group fell 0.6 percent and 1.7 percent, respectively. The big four banks fell 1-2 percent. Energy stocks also slid broadly despite higher oil prices. Oil Search tumbled 2.8 percent, while Woodside Petroleum, Santos and Origin Energy ended down between 0.6 percent and 0.8 percent. --------------------------------------------------------------- --------------------------------------------------------------- Commodities Crude oil futures are sliding $0.86 to $52.94 a barrel after spiking $1.73 to $53.80 barrel last Friday. Meanwhile, an ounce of gold is trading at $1,282.40, down $0.20 from the previous session?s close of $1,282.60. On Friday, gold slumped $9.70. On the currency front, the U.S. dollar is trading at 109.43 yen compared to the 109.67 yen it fetched on Monday. Against the euro, the dollar is valued at $1.1347 compared to yesterday?s $1.1365. --------------------------------------------------------------- To unsubscribe from this news bulletin or edit your mailing list settings click [here](. Registered Office/Accounts Dept: Suite 27, Essex Technology Centre, The Gable, Fyfield Road, Ongar, CM5 0GA. Customer Support +44 (0) 207 0700 961. Company registered in England and Wales: Number 2374988 VAT No. GB 549 2130 49