Thu, 29 Jul 2021

Unremarkable day on U.S. markets Tuesday

Lola Evans
11 Sep 2019, 06:08 GMT+10

NEW YORK, New York - U.S. stocks were little changed on Tuesday with concern over the direction of the Chinese economy and the impact it may have on world growth.

Producer prices declined very sharply in China in August, the biggest decline in 3 years, so while factory sales in volume terms may be holding steady, the prices factories are selling at are in decline. This may be an effect of the factories having to make provision for tariffs.

"It looks like a move from growth to value but it's too early to say if it's a shift or a trade," Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama," told the Reuters Thomson news agency on Tuesday

"The weakness coming out of China reflects a slowing economy as a result of trade negotiations."

"The consensus is that time is on the side of China, but in the short term, as they see their economy slow and as supply chains shift, that puts pressure on them to get a deal done," Hellwig told the Reuters agency.

China has promised to buy up more agricultural goods from the U.S. to gain favour in the trade talks with the United States, said the South China Morning Post.

At the close of trading Tuesday, the Dow Jones industrials were up 73.92 points or 0.28% at 26,909.43.

The Standard and Poor's 500 edged up 0.96 of a point or 0.03% to 2,979.39.

The Nasdaq Composite fell 3.28 points or 0.04% to 8,084.16.

Overseas equity markets were quiet, as elsewhere around the globe. The FTSE 100 in London rose 0.44% Tuesday. The German Dax declined 0.35%. In Paris the CAC 40 was little changed with a 0.08% gain.

On Asian markets, the Nikkei 225 in Japan was ahead 73.68 points or 0.35% at 21,392.10.

In China, the Shanghai Composite was down 3.54 points or 0.12% at 3,021.20.

The Australian All Ords fell 32.10 points or 0.47% to 6,728.00.

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