CHINA TOPIX

04/28/2024 06:33:23 pm

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Trades of China and US: Tagging Along in the Stock Market

(Photo : warrensulmasy.com) US stocks fell for the second consecutive day.

China's distressing position in the stock market seem to be getting worse as their oil prices continue to drop on Monday, September 22. This has been deemed as their largest fall in what was said to be a seven-week streak.

The investors have started to worry about China's depreciating performance in the stock market, which has been affecting oil prices as it weighed the energy stocks down. Given that China is the second placer in the soft economic data, following the United States, this downfall seemed to be affecting the prices of energy stocks as well.

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Additionally, investors consider the Unites States to be developing in the economic front as their astounding performance overtook Europe's and Asia's while the stock market continues to fight to reach higher this month. As stated by Kristina Hooper, Allianz Global Investors' strategist, the Chinese economy is now weighing down on stocks, whereby the lack of transparency has left uncertainty over their development.

Meanwhile, the stock index for Standard & Poor's 500 went 0.8 percent down with 16.11 point to 1,994.29. As of August 5, this is considered the greatest loss for the index in just one day. This month, their shares went down to a 0.5 percent mark. The average for Dow Jones Industrial declines as well. Dow reportedly had 0.6 percent at 16.11 points to 17,172.68. Nasdaq index also fell, dropping to 1.1 percent at 52.1 points to 4,527.69.

Energy stocks  stumbling down to 1.4 percent lost enormously compared with other stock prices. About 10 industry sectors that build up the S&P's 500 index fell while November's crude oil delivery also dropped to 78 cent up to $90.87 per barrel. Aside from energy stocks being considered as great decliners, smaller companies were also taken into account whereas investors take it as the market's riskiest sector.

So far, Russell 2000, an index that tracks stocks for small companies, fell 3 percent this year compared with S&P's gain of 7.9 percent. Russell's index dropped the most in all other tables having 1.5 percent. Although records show that the stock market is going south, analysts still believe that the strengthening economy is creating an amicable stock environment. 

Nevertheless, the fundamental market in the United States is reaching their targets and are even achieving goals way beyond expectations. This is a simple retreat and an opportunity to start building positions according to the chief market strategist of Voya Investment Management, Doug Cote. 

On the real estate sector, stocks fell 1.8 percent to $5.05 million, which is seasonally adjusted every year whereas sales last month fell from $5.14 million. This affected the stocks for Monday's report, which proves that the profit from first-time buyers remained low due to the fact that few Americans purchased homes last month as investors rebounded from real estate. It was a great relief in the bond market though when interest rates eased and yielded from last Friday's 2.58 percent to 2.57 percent.

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