Global Stocks Fall on Growth Concerns

Global stocks fell Wednesday after a slowdown in inflation in China added to concerns about weakening growth.

U.S. stock futures and European shares followed Asian markets lower after data showing lower than expect Chinese inflation in September, a day after disappointing import and export data from China dented stocks around the world. The consumer-price index rose 1.6% in September from a year earlier, compared with a 2% rise in August.

Futures indicated a 0.1% opening loss for the S&P 500 following Tuesday's small declines, as shares on Wall Street snapped their seven-session winning streak. Changes in futures aren't necessarily reflected in market moves after the opening bell.

The Stoxx Europe 600 was down 0.7% midway through the session, deepening losses from Tuesday.

Most Asian indexes declined amid fears Beijing would miss its year-end growth target. The Shanghai Composite Index closed 0.9% lower, while Hong Kong's Hang Seng Index lost 0.7% and Japan's Nikkei Stock Average fell 1.9%. China's third-quarter growth figures are due for release on Monday.

Chinese markets had initially rallied as the data propped up expectations for new stimulus measures, though the optimism quickly waned.

The recent losses come as last week's global stock rally runs out of steam. Although some of the worst fears over the global economy have eased, the latest run of weak Chinese data has reminded investors that a slowdown in the world's second-largest economy is likely to hold back growth elsewhere.

"Fears of imminent financial catastrophe were overdone. But most people see that the growth capacity of the global economy probably diminished over the summer," said Guy Foster, head of research at wealth manager Brewin Dolphin.

A lackluster start to the third-quarter corporate earnings season has added to investors' caution, he added.

After U.S. markets closed on Tuesday, J.P. Morgan Chase & Co. reported higher third-quarter profits but lower revenue. Intel Corp. said its third-quarter profit fell 6.3% on continued weakness in demand for personal computers. Both companies' shares fell in after-hours trading.

On Wednesday, Bank of America Corp. said it swung to a third-quarter profit, after big legal expenses had pushed the bank into the red last year. Other companies reporting Wednesday include BlackRock Inc., Delta Air Lines Inc. and Wells Fargo & Co.

Investors are looking ahead to the U.S. retail sales report for September and the Federal Reserve's Beige Book, which is based on anecdotes in the Fed's regional survey of economic conditions.

In currencies, the euro rose 0.2% against the dollar to $1.1410, while the dollar was 0.2% lower against the yen at ¥ 119.49.

In commodities, gold prices climbed 0.1% to $1,166.80 a troy ounce.

Brent crude oil was down 0.3% at $49.53 a barrel.

Write to Tommy Stubbington at [e-mail] and Riva Gold at [e-mail]

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(END) Dow Jones Newswires

October 14, 2015 08:05 ET (12:05 GMT)

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