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China's slower growth weighs on US stocks

Reported by AAP
Friday, April 13, 2012
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US stocks opened lower on Friday as slower growth in China eclipsed better-than-expected earnings from two big banks and internet giant Google.

After sharp gains on Thursday, Wall Street sentiment also was dampened by rising concerns across the Atlantic that Spain and Italy may be the next to succumb to the eurozone debt crisis.

The Dow Jones Industrial Average dropped 45.11 points (0.35 per cent) to 12,941.47 in the first five minutes of trade.

The broader S&P 500 shed 5.28 (0.38 per cent) to 1382.29, while the tech-rich Nasdaq fell 15.04 (0.49 per cent) to 3040.51.

"The US equity markets are under some pressure in early action, in the wake of a slower-than-forecasted pace of economic growth reported out of China, while traders are showing a mixed reaction to the slate of US earnings reports," Charles Schwab & Co. analysts said before the market opened.

"Looks like the steam has run out of Wall Street's sail," said Karee Venema at Schaeffer's Investment Research.

The company noted that "the last three Friday the 13ths have been down days".

On Thursday, gains on all three key indices topped 1.3 per cent as traders grew bullish on fresh economic indicators in the United States, Asia and Europe.

23/10/2014 10:05Sydney, Australia. 23 October,2014
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