Overseas Market Report
The tech-heavy Nasdaq has fallen for the third straight day as a sell-off in Chinese markets sparked concerns about slowing global economic growth, though the S&P 500 pared losses to end nearly flat. Beijing announced a steep cut in the level of cash that banks must hold as reserves, aimed at lowering financing costs and spurring growth amid the trade spat.
In Monday’s session, the first trading session for mainland China investors since new US and Chinese tariffs went into effect, both Chinese stocks and the yuan slid. The possibility of tapering global growth, led by China’s slowdown, spurred a retreat from the high-flying tech sector, which declined 1.2 per cent. Among the biggest drags on both the Nasdaq and the S&P 500 were Microsoft Corp, down 1.1 per cent, and Adobe Systems Inc, down 3.2 per cent.
By contrast, defensive sectors, including utilities, consumer staples, and real estate, led the S&P’s major sectors in per centage gains. The Dow Jones Industrial Average rose 39.73 points, or 0.15 per cent, to 26,486.78, the S&P 500 lost 1.14 points, or 0.04 per cent, to 2,884.43 and the Nasdaq Composite dropped 52.50 points, or 0.67 per cent, to 7,735.95. The US bond market was closed for the Columbus Day holiday.Morning Market Note - Tuesday 9th October