Global stocks, commodities pulled lower on growth worry

Mon Sep 28, 2015 4:14pm EDT
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By Chuck Mikolajczak

NEW YORK (Reuters) - Global equity markets and commodities slumped on Monday, pulled lower by worry over the economic health of China and other big emerging markets in a week filled with key economic data.

An 8.8 percent drop in Chinese industrial firms' profits and a plunge of nearly 30 percent in miner Glencore's (GLEN.L: Quote) London-traded shares sparked the latest round of worry, sending copper CMCU3 back below $5,000 a tonne.

Market participants have been cautious ahead of a week of key economic data, including euro zone inflation on Wednesday, Chinese industrial and service sector PMIs on Thursday and U.S. jobs figures on Friday.

In addition, a raft of U.S. Federal Reserve officials are scheduled to speak, including Chair Janet Yellen on Wednesday.

New York Federal Reserve President William Dudley added to expectations of an early rate increase, suggesting the central bank could pull the trigger as soon as in October. [

"Regardless of what the Fed does, we’re being set up for more volatility in the fourth quarter," said Mohannad Aama, managing director at Beam Capital Management LLC in New York.

"You have increasing fears about a global slowdown and the economic reports out of China have only increased those fears."

The Dow Jones industrial average .DJI fell 312.78 points, or 1.92 percent, to 16,001.89, the S&P 500 .SPX lost 49.57 points, or 2.57 percent, to 1,881.77 and the Nasdaq Composite .IXIC dropped 142.53 points, or 3.04 percent, to 4,543.97.   Continued...

Pedestrians holding their mobile phone walk past an electronic board showing the various stock prices outside a brokerage in Tokyo, Japan, September 9, 2015.  REUTERS/Yuya Shino