World stocks fall on China worries; oil extends decline
By Caroline Valetkevitch
NEW YORK (Reuters) - World equity indexes dropped on Monday as disappointing trade data in world No. 2 economy China stoked concerns over weakening global growth, while oil prices extended losses for a fourth day.
All three major U.S. stock indexes fell about 1 percent, while European shares closed 1.1 percent lower.
Fresh builds of supply at the delivery point for U.S. crude futures also dragged down oil prices, offsetting bullish OPEC demand projections.
Data showed China's October exports fell for a fourth month, while imports also dropped, leaving it with a record high trade surplus of $61.64 billion. The United States is one of China's biggest trade partners.
Also not boding well for world growth, the Organization for Economic Co-operation and Development cut its 2015 global growth forecast again. But it said the Federal Reserve should raise interest rates as the U.S. economic recovery gains steam.
Recent economic data including Friday's U.S. jobs report has boosted bets for a December rate hike by the Fed, and that has added to volatility in U.S. stocks.
"There are short-term, myopic concerns about a Fed rate hike," said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma.
"Bond and stock prices will decline when the Fed makes that first announcement, but, ultimately, stocks will thrive because it will prove the U.S. economy is healthy enough to stand on its own," Dollarhide said. Continued...