10:50 AM New York – U.S. stocks drifted lower after retail sales were lower than expected and China reported economic expansion of 7.5%. Industrial production in China increased 8.9%, slowest since 2009. Metal prices rose and energy prices traded higher.
Market indexes in New York drifted lower in the morning trading after retail sales were less than expected and China’s economic growth met lowered expectations.
U.S. retail sales increase in June declined to 0.4% after rising 0.5% in May, according to the Commerce Department in Washington.
Sales excluding autos barely increased 0.1% and core sales that exclude auto, gasoline and building materials edged higher only 0.1% after rising 0.2% in May. Auto sales increased 1.8% from May, including 2.1% increase in sales at dealerships.
Separately, in a regional survey conducted by Federal Reserve Bank of New York showed facory activities index increased to 9.46 in July after rising 7.84 in June. Any reading above zero indicates expansion.
China Growth Slows to 7.5%
Economy in the second quarter to June expanded at 7.5% after growing at 7.7% in March quarter, National Bureau of Statistics said today.
Industrial production increased 8.9% in June from a year ago and the increase was the slowest since 2009.
Retail sales in June increased 13.3% from a year ago after rising at 12.9% in May. Fixed asset investments excluding rural households surged 20.1% in the six months to June from a year ago.
European markets advanced after China met lowered economic growth expectations. Market indexes in London, Paris and in Frankfurt gained.
SEB AB, the fourth largest Swedish bank, said second quarter net income soared 28% to 3.79 billion kronor. The earnings were ahead of expectations of at least 3.15 billion kronor.
Commerzbank increased 4% after Wells Fargo agreed to acquire real estate portfolio of Hypothekenbank Frankfurt in the UK in a transaction that is expected to close before September.
Man Group declined 4% after Russian coal miner Sibanthracite Plc canceled its public offering. The GLG Emerging Markets Growth Fund, owned by Man Group, controlled 25% of the company and is the largest shareholder in the coal miner.
Kuehne & Nagle International AG increased 3% to Sfr113 after the largest freight forwarding company in the world said second quarter net income increased 6.3% to Sfr153 million.
Markets in Asia generally closed higher after China met economic growth expectations of 7.5% in the June quarter.
Market index in Hong Kong increased 0.1%, in Shanghai rose 1.4% and in Jakarta and in Seoul gained 0.1% and 0.3% respectively.
In Mumbai trading, stocks gained but the latest read on wholesale inflation was higher than expected at 4.86% in June after rupee fell to a record low.
U.S. Stocks in Review