World stocks, copper and oil fall after weak China exports

Brent crude was trading 97 cents down at $108.03.

World stock indexes fell and the prices of copper and oil sank on Monday after surprisingly weak Chinese trade data added to worries about a slowdown in the world’s second-largest economy.

China’s exports unexpectedly tumbled in February, falling 18.1 per cent from a year earlier and swinging the trade balance into deficit. The data underscored recent concerns about the outlook for China’s economy, even though the Lunar New Year holidays were blamed for the slide. The data put a dampener on risk sentiment, which had been boosted briefly by Friday’s stronger-than-expected US non-farm payrolls report.

China’s CSI300 share index plunged 3.3 per cent to its lowest level in nearly nine months. Chinese gloom added to the strain in emerging markets, compounding worries that the US Federal Reserve’s reduction in stimulus will greatly curb the flow of money.

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“The weak China trade balance data caused some flight to quality on less optimism about the global economy,” said Jeffrey Young, interest rate strategist at Nomura in New York. Prices on benchmark 10-year US Treasuries were last up 3/32 to yield 2.78 per cent.

On Wall Street, the Dow Jones industrial average fell 70.26 points or 0.43 per cent, to 16,382.46, the S&P 500 lost 5.11 points or 0.27 percent, to 1,872.93 and the Nasdaq Composite dropped 11.229 points or 0.26 percent, to 4,324.994.

Shares of Freeport McMoRan Copper & Gold lost 3.3 per cent to $31.14 as the signs of a slowing Chinese economy sent London copper to an eight-month low. The S&P materials index lost 0.6 per cent.

European shares, as measured by the pan-European FTSEurofirst 300 index, closed down 0.5 per cent, hit by declines in shares of mining companies sensitive to China’s ferocious appetite for raw materials. A global stock index was down 0.6 per cent and an emerging market stock index was down 1.3 per cent. In the metals markets, London copper hit an eight-month low. Three-month copper on the London Metal Exchange traded down 1.36 percent to $6,690 a tonne. It earlier slid as low as $6,608 a tonne, its weakest level since June 25 and within a whisker off nearly three-year lows.

Brent crude was trading 97 cents down at $108.03.