Stock Market Today: Dow Expected to Slide as Inflation Fears Hold, Bitcoin Rises

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Chinese GDP growth slowed in the last quarter, data showed Monday.

Kevin Frayer / Getty Images

The stock market slipped on Monday as poor economic data from China underscored many of the macroeconomic challenges facing markets. Inflation fears remained on the radar as Bitcoin and oil prices skyrocketed.

Future for the


Dow Jones Industrial Average

showed an open 80 points lower, after the index rose 382 points on Friday to close at 35,294.


S&P 500

and


Nasdaq

indicated a similar start.

Abroad, the


Shanghai Composite

the index slipped by 0.1% and the pan-European index


Stoxx 600

fell 0.4%.

Investor concerns remain focused on familiar themes such as inflation, supply chain disruptions and central bank stimulus measures. On Monday, under the spotlight, poor economic data from China showing the macroeconomic impact of some of these forces.

China’s gross domestic product grew 4.9% year-on-year in the third quarter, while industrial production in September rose 3.1%. Both measures fell short of expectations.

A slowdown in economic growth “was mainly due to the policy challenges of deleveraging the real estate sector, growing compliance in the tech sector, and cracking down on education centers and entertainment sectors,” said Iris Pang, chief economist. for Greater China at ING. Bank. The economist cited the imminent failure of the indebted developer


China Evergrande

(3333.HK) as a cause of pressure on the real estate sector.

“Manufacturing was hit hard by supply chain disruptions from Covid, with some port operations impacted in 3Q21 and chip shortages continued through the quarter,” Pang added of industry figures .

All eyes remain on inflation, with attention in Europe focusing on Andrew Bailey’s comments over the weekend, after the Governor of the Bank of England said the central bank would act to curb the inflation.

Inflationary fears were fueled by rising commodity prices as oil continued its seemingly inexorable rise. Futures for international benchmark Brent crude rose nearly 1% to flirt with the $ 86 per barrel mark, while US futures for West Texas Intermediate crude rose 1.3% to reach about $ 83.40.

The earnings season continues in effect this week, with


State Street

(STT) and


Steel dynamics

(STLD) reports Monday.

“The picture for the real economy may look a bit more mixed, especially if you are exposed to rising interest rates, material costs, or supply chain disruptions,” said Jeffrey Halley, broker. at analyst Oanda, noting the explosion in profits of major US banks. Last week.

With tech, consumer goods and manufacturing groups reporting this week, “their 2022 outlook will be more important than their actual results and this week could see increased two-way volatility in stocks,” said Halley.

Elsewhere, the price of


Bitcoin

was nearing its all-time high of nearly $ 65,000 as US regulators expected US regulators to approve the first exchange-traded fund that tracks Bitcoin price futures. The main crypto was around 4% higher on Monday at nearly $ 62,000.

Here are four stocks in motion Monday


Valneva

(VLA.France) rose 32% in Paris, after biotechnology announced positive phase three results for its Covid-19 vaccine, which it said outperformed comparable rival vaccine from


AstraZeneca

(AZN). AstraZeneca fell 0.6% in London.


Umicore

(UMI.Belgium) fell 4.6% in Brussels, after the materials technology group, which supplies rare metals to the electric vehicle industry, slashed its outlook for 2021 due to the chip shortage .


Volkswagen

(VOW3.Germany) fell 1.3% in Frankfurt following reports that its Skoda unit would halt production for two weeks due to component shortages.

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