Stocks retreated today as the Dow fell 140 points on fears of slowing global economic growth to close at 17,750. Trading volume was higher suggesting the big boys were sellers.
The cause of all the ruckus today seems to have begun in China when Caixin Insight Group reported its latest Chinese manufacturing (PMI) index reading. The number came in a 49.4 down from 49.7 showing that Chinese manufacturing has now declined 14 months in a row as the economy is wrestling with overcapacity and weak external demand. He “Big” Fan, chief economist at Caixin, was quoted as saying "All of the index's categories indicated conditions worsened...the economy lacks a solid foundation for recovery and is still in the process of bottoming out”. This news sent shares in Europe lower and added downside pressure to US markets at the open.
Oil held steady at the open but then fell $7.40 an ounce to $1,288. The US dollar firmed up against the Yen and Euro which affected gold prices negatively.
WTI oil prices also fell thanks to concerns of a global supply glut. WTI crude was down 1.7% to $44.02 a barrel.