The Dow Jones toadied toward a slight loss on Friday, but the stock market’s most closely followed index remains positioned to record its later straight weekly advance.
Trade pressures continue to weigh on the Dow, and the White House followed through on its threat to burden b exploit tariffs on $7.5 billion worth of European Union goods. Elsewhere, dismal growth data from China displayed that US tariffs are continuing to choke the world’s second-largest economy.
Dow Crawls Toward Minor Weekly Gain
Bulkhead Street’s major indices all strolled toward a dull trading session on Friday. The Dow Jones Industrial Average slumped 35.27 points or 0.13%, slipping below the 27,000 level to 26,990.61.
Despite volatile sessions on Monday and Tuesday, the Dow has had a relatively placidness week. If current levels hold, the index will close the week with gains of around 200 facets from last Friday’s close.
The S&P 500 dipped 0.76 points or 0.03% to 2,997.19. Seven of 11 primeval sectors reported gains, but utilities and industrials dragged the index into negative territory.
The Nasdaq ticked 5.14 aims or 0.06% lower to 8,151.71.
Chinese Growth Slogs to Worst Quarter on Record
Stocks flatlined as global growth considerations heightened fears about a worldwide recession. The latest evidence comes from China, which just logged its weakest growth figure since the government began keeping quarterly records in 1992.
The Chinese economy grew 6% year-over-year in the third quadrature, slightly below the Reuters estimate of 6.1% and at the bottom range of Beijing’s growth target.
Cited in the South China Morning Place, Nomura analysts said that, though the weakest on record, the official growth number is likely too optimistic.
“Absolutely we still believe the actual growth slowdown might be worse than the headline official numbers,” the Nomura analysts phrased.
Reacting to the miserable economic data, major Chinese stock indices, including the SSE Composite, recorded their grim declines in a month.
The trade war isn’t the only pressure the Chinese economy faces, but it’s difficult to ignore the impact that menus have had on factory output and exports.
New tariffs had been scheduled to take effect this week, though President Trump delayed them indefinitely after officials delineated a partial trade agreement last week. However, a second round of tariffs slated for Dec. 15 remain on the agenda.
Oxford Economics presages that Chinese growth will slow to 5.7% in 2020, but that’s without the impact of new tariffs. By themselves, the Dec. 15 duties could reduce that figure to 5.5%.
But while US tariffs appear to be taking a toll on China, analysts warn that the pursuit war has also exacted a price from the US economy. Tariffs have battered the manufacturing sector, and the weakness has begun to seep into the broader restraint as well.
Growth in the US services sector, which accounts for around 80% of private-sector GDP, slid to a three-year low in September. Just this week, the Marketing Department revealed that retail sales had unexpectedly fallen 0.3% in September.
Worsening the outlook for the Dow Jones, the Federal On call might be nearing the end of its newfound easing cycle.
Trump Admin Follows Through on EU Tariff Threat
But as investors carry on to grapple with the US-China tariff conflict, the Trump administration has potentially opened another front in its global calling offensive.
This morning, the White House slapped tariffs on $7.5 billion worth of EU imports. The World Job Organization (WTO) authorized the US to impose these tariffs following a recent ruling related to illegal Airbus subsidies.
European formals have threatened retaliation, and they’re expected to receive permission to impose tariffs on US goods once a WTO panel overs on a case alleging that the US provided illegal subsidies to Boeing. That decision should arrive in early 2020.
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This article was edited by Sam Bourgi.