Wall Street Opens Lower After Weak China Trade Data

The USA session is looking a little quieter today from a data perspective but attention will now switch to corporate earnings season.

The Dow Jones industrial average lost 71 points, or 0.4 percent, to 17,060.

Global stocks fell, ending their longest winning streak since February.

The pan-European FTSEurofirst 300 index was down 1.3 percent, with the euro zone’s blue-chip Euro STOXX 50 also down 1.3 percent.

The Standard & Poor’s 500 index slipped two points to 2,012. The deal is likely to result in the disposal of SAB’s 58% stake in its USA joint venture with Molson Coors.

German data disappoints German data set the negative mood, as it showed investor confidence fell to its weakest level in a year.

On Monday evening US Federal Reserve Governor Lael Brainard said the U.S. central bank should hold off on any interest rate hike until it is clear that a global slowdown, trouble in China and other worldwide risks will not push the USA recovery off course.

We have already seen economic sentiment decline quite considerably this year due to the emerging market slowdown and the latest crisis involving Volkswagen has added to that, with the motor industry accounting for around a fifth of total exports.

Twitter rose 1.6% to US$29.21 after the social media company said it expects third-quarter revenue to be at or above the high end of its forecast and that it was cutting 8% of its workforce. Britain’s FTSE 100 declined 0.4 per cent and Germany’s DAX slid 0.9 per cent. France’s CAC 40 dropped 1 per cent.

This third-quarter earnings season has investors brace for the first profit recession in years, but a few companies are bucking the pain.

JPMorgan Chase (N:JPM) is scheduled to report after the close Tuesday, beginning a heavy week of earnings reports from financials, which includes Bank of America (N:BAC) and Wells Fargo (N:WFC) on Wednesday, and Citigroup (N:C) and Goldman Sachs (N:GS) on Thursday.

ENERGY: Benchmark USA crude rose 37 cents to $47.47 ar barrel on the New York Mercantile Exchange.

United Continental fell 1.4 percent, while Alaska Air was down 2 percent at $76.43.

The dollar’s value against a basket of six major currencies dipped less than 0.1 percent after earlier touching its lowest in almost a month. Core prices rose by 1% which was unchanged from a month earlier but below expectations of a slight improvement.