U.S. stocks lower as downbeat global economy news hits sentiment

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U.S. stocks opened lower Tuesday, with dour economic news from China and Europe, along with news of more international oil supply cuts weighing on sentiment...

U.S. stocks opened lower Tuesday, with dour economic news from China and Europe, along with news of more international oil supply cuts weighing on sentiment after a long Labor Day weekend.

That starts with more disappointing news from the world’s second biggest economy. A Caixin survey showed China’s service sector expanded in August at its slowest pace in eight months, providing further evidence that the country’s post-pandemic recovery is faltering. “Sentiment has turned downbeat again on China as fresh brushstrokes are painted on the picture of its slowing economy,” said Susannah Streeter, head of money and markets, Hargreaves Lansdown.

“Oil prices have surged to reach new highs in 2023, a development poised to have significant repercussions on the upcoming August consumer price index reports…[which] presents a fresh challenge for central banks as they continue their diligent efforts to bring inflation levels back in line with their desired targets,” said Stephen Innes, managing partner at SPI Asset Management.

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