AL-IMAN INTERNET CAFE (KIMANGA): Chinese data weighs on stocks as gold tanks again

Monday, April 15, 2013

Chinese data weighs on stocks as gold tanks again

<p> FILE - In this Feb. 8, 2013, file photo, Trader Peter Costa, left, works on the floor of the New York Stock Exchange in New York. The U.S. economy is recovering from the Great Recession but at a modest, uneven pace. Many scars remain visible, particularly an unemployment rate of 7.6 percent. The U.S. has 2.8 million fewer jobs than in December 2007, when the recession began. And average hourly wages have trailed inflation in the past three years. Meanwhile, the federal budget deficit has ballooned, topping $1 trillion each year in President Barack Obama’s first term. It is forecast to fall to $845 billion this year. Obama faces the challenge of reducing that gap without cutting it so quickly that it slows growth. (AP Photo/Richard Drew, File)

Associated Press -

FILE - In this Feb. 8, 2013, file photo, Trader Peter Costa, left, works on the floor of the New York Stock Exchange in New York. The U.S. economy is recovering from the Great Recession

LONDON (AP) -- Weaker-than-expected Chinese economic growth figures weighed on markets Monday as the price of gold slid another $100 to hit a two-year low amid concerns that a 12-year bull run for the commodity has come to an end.

Though Beijing government figures showed that the world's second-largest economy expanded 7.7 percent in the first quarter of the year compared with a year earlier, the figure was down on the previous period's 7.9 percent rate and was worse than expectations for a modest increase to 8 percent.

The report stoked worries about the strength of China's economy at a time when a run of U.S. economic data has disappointed and Europe remains embroiled in its crisis over too much government debt.

"Weak economic growth in China has taken investors by surprise," said Mike McCudden, head of derivatives at stockbroker Interactive Investor. "With the recent run or weaker global economic data investors have reached an impasse and without a great deal in sight this week to inspire them, we should see markets drift lower."

In Europe, the FTSE 100 index of leading British shares was down 1.1 percent at 6,313 while Germany's DAX fell 1 percent to 7,678. The CAC-40 in France was also 1 percent lower at 3,692.
Wall Street was poised for a lower opening, with Dow futures down 0.3 percent and the broader S&P 500 futures 0.5 percent lower. The focus during the U.S. session will be on the next batch of quarterly corporate earnings statements from financial companies, including Citigroup, Charles Schwab and First Republic Bank.

Much of the interest in financial markets though is centered on gold, which has taken a battering over recent sessions.