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Oil price fall, China data weighs on stocks

Reuters  |  NEW YORK 

By Chuck Mikolajczak

NEW YORK (Reuters) - Stocks around the globe were closing in on their biggest drop in two weeks as soft Chinese data hit demand for risky assets while weakened again on Friday.

U.S. stocks were broadly lower, with falling more than 1 percent as touched a six-month low and U.S. fell below $60 for the first time since March after entering a bear market on Thursday.

Data from added to the downward pressure, showing factory-gate inflation slowed for the fourth month in October on cooling domestic demand and

On the U.S. side, prices rose more than expected in October and at their fastest pace in six years. But measures of underlying price pressure cooled, bolstering the view that is not facing a resurgence in inflation.

European shares dipped as and sold off, but they managed to end the week with a small gain.

"You have all this data coming in and you have a lot of cross currents. We are in the midst of that peaking process for growth in the and we don't know where things settle out with regards to the euro zone," said Thomas Martin, at in Atlanta,

The Dow Jones Industrial Average <.DJI> fell 239.43 points, or 0.91 percent, to 25,951.79, the <.SPX> lost 36.54 points, or 1.30 percent, to 2,770.29 and the <.IXIC> dropped 162.14 points, or 2.15 percent, to 7,368.75.

Equities snapped a streak of seven straight days of gains on Thursday after the held interest rates steady but appeared to remain on track to raise its key interest rate next month.

Some investors had hoped that the sharp share price falls during what has been called "Red October" might have encouraged to take a more dovish approach toward monetary policy.

The pan-European index <.STOXX> lost 0.37 percent and MSCI's gauge of stocks across the globe <.MIWD00000PUS> shed 0.13 percent.

The dollar, which had weakened sharply after Tuesday's U.S. mid-term elections, was up for a second straight day and on track for a fourth straight week of gains.

Further dollar gains can pose headwinds for risky assets as that translates into tightening financial conditions as most emerging market economies borrow in dollars. A strong dollar could also hurt earnings of multinational U.S. corporations.

The dollar index <.DXY> rose 0.19 percent, with the euro down 0.26 percent to $1.1332.

The equity weakness pushed bond yields lower. 10-year notes last rose 12/32 in price to yield 3.1893 percent, from 3.232 percent late on Thursday.

fell to multi-month lows as global supply increased and investors worried about the possibility of slowing fuel demand, putting U.S. on track for the longest stretch of daily declines since 1984.

U.S. Intermediate crude fell 0.73 percent to $60.23 per barrel and Brent was last at $70.21, down 0.62 percent on the day.

(Reporting by Chuck Mikolajczak; Editing by and Dan Grebler)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, November 10 2018. 02:22 IST