Investing.com - U.S. stock markets were broadly lower after the open on Tuesday, following the release of mixed U.S. housing data, as commodity producers led losses amid concerns over a deeper-than-expected slowdown in Chinese economic growth.
During early U.S. trade, the Dow Jones Industrial Average dropped 0.75%, the S&P 500 index fell 0.6%, while the Nasdaq Composite index retreated 0.7%.
U.S. equities came under heavy selling pressure in the opening minutes, tracking global stock markets lower as concerns over China’s economic outlook weighed on appetite for riskier assets.
China increased fuel prices for the second time in less than six weeks on Monday, sparking concern growth in the world’s fastest-growing major economy may slow more-than-expected.
The rising cost of gasoline is also a threat to the global economic outlook as it could spark inflation and hurt consumer spending.
A deeper slowdown in China, the world’s second biggest economy, would impair a global expansion that is already faltering because of the implementation of harsh austerity measures in Europe.
Shares in mining giant BHP Billiton tumbled 3.5% after its chairman reportedly said the miner was revaluating its capital-spending plans amid slowing growth in China. The company also said Chinese demand for iron ore was "flattening out."
The comments weighed on rivals Rio Tinto, which dropped 4%, copper miner Freeport McMoran Copper & Gold and Cliffs Natural Resources declined 2.85% and 4.3% respectively, while aluminum producer Alcoa fell 2.35%.
Shares in mining equipment makers also came under pressure, with Joy Global shares tumbling 5.15% and Caterpillar dropping 2.45%.
Meanwhile, shares in software maker Adobe Systems slumped 3.85% after the company reported that fiscal first quarter earnings fell by 21%, as writedowns and weaker product sales offset revenue growth from subscriptions.
Shares in homebuilders were also in focus after a report from the U.S. Commerce Department saying U.S. housing starts fell in February, but the number of building permits issued rose to the highest level since October 2008.
Homebuilder PulteGroup saw shares retreat 1.2% and Toll Brothers dropped 1.9%.
On the upside, luxury goods retailer Tiffany’s surged 7.5% after reporting fourth quarter revenue of USD1.19 billion, as sales grew in all regions.
Fashion company Michael Kors Holdings saw shares add 1% after it reported strong retail sales and raised its earnings outlook.
Shares in Focus Media Holdings jumped 3.1% after the Chinese display-advertising company reported quarterly earnings results that easily beat market expectations and forecast a strong first quarter.
Meanwhile, shares in software developer Oracle dipped 0.2%, as the company was set to release company earnings after Tuesday’s closing bell. Contract manufacturer Jabil Circuit was also due to release earnings later Tuesday.
Across the Atlantic, European stock markets were sharply lower, as banks and miners weighed on indexes amid concerns about Chinese demand, while auto makers declined after China hiked gas prices.
The EURO STOXX 50 fell 1.2%, France’s CAC 40 sank 1.25%, Germany's DAX tumbled 1.4%, while Britain's FTSE 100 dropped 1.25%.
During the Asian trading session, Hong Kong's Hang Seng Index retreated 1.25%, while Japan’s Nikkei 225 Index remained closed for a public holiday.
Later in the day, Federal Reserve Chairman Ben Bernanke was to speak at an event in Washington; his comments would be closely watched.
During early U.S. trade, the Dow Jones Industrial Average dropped 0.75%, the S&P 500 index fell 0.6%, while the Nasdaq Composite index retreated 0.7%.
U.S. equities came under heavy selling pressure in the opening minutes, tracking global stock markets lower as concerns over China’s economic outlook weighed on appetite for riskier assets.
China increased fuel prices for the second time in less than six weeks on Monday, sparking concern growth in the world’s fastest-growing major economy may slow more-than-expected.
The rising cost of gasoline is also a threat to the global economic outlook as it could spark inflation and hurt consumer spending.
A deeper slowdown in China, the world’s second biggest economy, would impair a global expansion that is already faltering because of the implementation of harsh austerity measures in Europe.
Shares in mining giant BHP Billiton tumbled 3.5% after its chairman reportedly said the miner was revaluating its capital-spending plans amid slowing growth in China. The company also said Chinese demand for iron ore was "flattening out."
The comments weighed on rivals Rio Tinto, which dropped 4%, copper miner Freeport McMoran Copper & Gold and Cliffs Natural Resources declined 2.85% and 4.3% respectively, while aluminum producer Alcoa fell 2.35%.
Shares in mining equipment makers also came under pressure, with Joy Global shares tumbling 5.15% and Caterpillar dropping 2.45%.
Meanwhile, shares in software maker Adobe Systems slumped 3.85% after the company reported that fiscal first quarter earnings fell by 21%, as writedowns and weaker product sales offset revenue growth from subscriptions.
Shares in homebuilders were also in focus after a report from the U.S. Commerce Department saying U.S. housing starts fell in February, but the number of building permits issued rose to the highest level since October 2008.
Homebuilder PulteGroup saw shares retreat 1.2% and Toll Brothers dropped 1.9%.
On the upside, luxury goods retailer Tiffany’s surged 7.5% after reporting fourth quarter revenue of USD1.19 billion, as sales grew in all regions.
Fashion company Michael Kors Holdings saw shares add 1% after it reported strong retail sales and raised its earnings outlook.
Shares in Focus Media Holdings jumped 3.1% after the Chinese display-advertising company reported quarterly earnings results that easily beat market expectations and forecast a strong first quarter.
Meanwhile, shares in software developer Oracle dipped 0.2%, as the company was set to release company earnings after Tuesday’s closing bell. Contract manufacturer Jabil Circuit was also due to release earnings later Tuesday.
Across the Atlantic, European stock markets were sharply lower, as banks and miners weighed on indexes amid concerns about Chinese demand, while auto makers declined after China hiked gas prices.
The EURO STOXX 50 fell 1.2%, France’s CAC 40 sank 1.25%, Germany's DAX tumbled 1.4%, while Britain's FTSE 100 dropped 1.25%.
During the Asian trading session, Hong Kong's Hang Seng Index retreated 1.25%, while Japan’s Nikkei 225 Index remained closed for a public holiday.
Later in the day, Federal Reserve Chairman Ben Bernanke was to speak at an event in Washington; his comments would be closely watched.