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Overseas Trading: Chinese Trade Data Drills Stocks

A steeper-than-forecast drop in Chinese exports has triggered a gloomy session for global stocks

Oct 13, 2016 at 8:42 AM
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A sharper-than-expected 10% decline in Chinese dollar-denominated exports, coupled with a surprise tumble in imports, weighed on most Asian markets. Selling pressure was also exacerbated by concerns about the health of Thailand's King Bhumibol Adulyadej -- with reports indicating the world's longest-reigning monarch has since passed away. While the mainland's Shanghai Composite managed to shrug off the data, rising 0.1%, stocks elsewhere weren't nearly as fortunate.

Japan's Nikkei dropped 0.4%, as exporters surrendered earlier gains amid a strengthening yen. Even worse off was Hong Kong's Hang Seng, which tumbled 1.6% amid a brutal session for Cathay Pacific Airways. Rounding things out, South Korea's Kospi slid 0.9%, after the Bank of Korea left its key interest rate as is for a fourth consecutive month.

Meanwhile, stocks in Europe are struggling, after yesterday's Fed minutes suggested a December rate hike could be in the cards. The aforementioned trade data out of China is acting as a negative catalyst, as well, particularly for mining stocks. At last check, London's FTSE 100 is down 1%, the French CAC 40 has tumbled 1.4%, and the German DAX is off 1.2%.

overseas trading october 13

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