By Victor Reklaitis, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks extended their weekly
decline on Wednesday, joining in a global sell-off and putting the
S&P 500 on pace to stretch its losing streak to three straight
sessions.
Analysts attributed the worldwide selling of equities to worries
about China's slowdown and continued Russia-Ukraine tensions.
The S&P 500(SPX) was last down 11 points, or 0.6%, to 1,857,
leaving the benchmark index 1.1% off its record close on
Friday.
The Dow Jones Industrial Average(DJI) lost 77 points, or 0.5%,
16,274, also dropping for the third day in a row.
The Nasdaq Composite(RIXF) fell 27 points, or 0.6%, to 4,280,
losing ground for the fifth straight day.
Asian markets closed lower on Wednesday, with Japan's Nikkei
benchmark and Hong Kong's Hang Seng shedding 2.6% and 1.7%,
respectively. The Stoxx Europe 600 was last down 1.3%, setting that
index up for its lowest close in a month.
"Economic slowdown in China and geopolitical tension between
Russia and Ukraine are the major hurdles for the markets," said
Naeem Aslam, chief market analyst at Ava Trade, in emailed comments
on Wednesday.
Beyond China and Russia-Ukraine concerns, reasons for the global
slump could include a strengthening euro and fresh questions about
Japan's stimulus measures, said Peter Boockvar, chief market
analyst at the Lindsey Group, in a note on Wednesday. He said the
"2014 global market action in its early stage has a definite
different complexion than the easy ride up the chair lift in
2013."
Boockvar noted that many major European and Asian stock markets
are at or below their closing lows on March 3, "when markets
finally reacted lower to Putin's war games," referring to Russian
President Vladimir Putin. Copper, a proxy for global growth, also
has slumped, he added.
High-grade copper(HGK4) for May delivery has traded below $3 a
pound this week, a level not seen by the metal since July 2010. In
addition to fears that a growth slowdown in China could affect
copper demand, the metal has also been used as collateral for loan
deals and there are fears those could start unwinding.
In economic news on Wednesday, a reading on euro-zone industrial
production showed a decline of 0.2%, missing expectations for an
increase and contributing to negative sentiment. The U.S. economic
calendar is empty, and investors have been looking ahead to next
week's Federal Reserve meeting.
Among individual stocks, VeriFone Systems Inc.(PAY) jumped 8%.
Late Tuesday, the maker of electronic payment devices reported a
fiscal first-quarter loss but it also guided second-quarter revenue
above Wall Street's forecasts.
On the downside, Express Inc.(EXPR) shed 12% after the clothing
retailer said fourth-quarter earnings fell 25% due to extensive
promotions and discounting. (Read more in the Movers & Shakers
column
http://www.marketwatch.com/story/oxigene-doubles-fannie-and-freddie-extend-fall-2014-03-12.)
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