Global stocks weak on Chinese data, Fed uncertainty; oil falls

Tue Oct 13, 2015 5:00pm EDT
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By Rodrigo Campos

NEW YORK (Reuters) - A gauge of stocks in major markets fell on Tuesday for the first session in 10 after Chinese trade data reinforced views that the world's second-largest economy continues to lose momentum, while further clouding the market's view on U.S. interest rates.

Crude futures ended lower after early gains.

China's exports fell less than expected in September but a sharper fall in imports left economists divided over whether the country's ailing trade sector is showing signs of turning around. The data was not enough to suggest a greater risk of a hard landing, but it did feed expectations that Beijing will soon add to stimulus measures.

St. Louis Federal Reserve President James Bullard, who opposed the decision to delay a rate hike when the Fed met in September, said recent economic data is unlikely to convince other policymakers to increase rates when the Fed meets in two weeks. Fed Governor Daniel Tarullo said the Fed should not hike interest rates this year.

Fed Chair Janet Yellen and Vice Chair Stanley Fischer have recently said they support raising rates this year, but an increasingly vocal group of policymakers warn a global economic chill could weigh heavily on the U.S. economy.

"The biggest market-moving news out is the Fed chitchat, and that's not really helping," said Kim Forrest, senior equity research analyst, Fort Pitt Capital Group in Pittsburgh. "They keep saying something is going to happen and nothing happens."

The Dow Jones industrial average .DJI fell 49.97 points, or 0.29 percent, to 17,081.89, the S&P 500 .SPX lost 13.77 points, or 0.68 percent, to 2,003.69 and the Nasdaq Composite .IXIC dropped 42.03 points, or 0.87 percent, to 4,796.61.

The MSCI world share index .MIWD00000PUS fell 0.8 percent, ending its longest winning streak since February.   Continued...

Traders work on the floor of the New York Stock Exchange September 22, 2015. REUTERS/Brendan McDermid