S&P 500 Futures, Oil Retreat as China’s Industrial Output Slows
U.S. equity futures fell, oil dropped and the New Zealand dollar slid as China’s industrial output grew at the slowest pace in three years and President Hu Jintao said the economy faces “notable downward pressure.”
Standard & Poor’s 500 Index futures lost 0.1 percent to 1,436.60 as of 7:16 a.m. in Tokyo after the equity gauge last week reached the highest level since 2008. Oil retreated 0.1 percent to $96.30 a barrel in New York. The New Zealand dollar depreciated 0.2 percent to 81.09 U.S. cents.
Industrial production in China increased 8.9 percent in August from a year earlier and fixed-asset investment growth in the first eight months eased to 20.2 percent, the National Bureau of Statistics said yesterday in Beijing. Inflation accelerated for the first time in five months. The data underscore risks that full-year growth in the world’s second- biggest economy will slide to its lowest level in more than two decades.
The S&P 500 last week added 2.2 percent to 1,437.92, its biggest rally since June. It rose within 10 percent of its all- time high in October 2007. The Dow Jones Industrial Average finished at the highest level since December 2007.
U.S. retail sales probably improved for a second month in August as consumers overcame a lack of jobs and stagnant wages, economists said before reports this week. A 0.7 percent increase in purchases would follow a 0.8 percent July advance, according to the median forecast of 66 economists surveyed by Bloomberg News ahead of Commerce Department figures on Sept. 14.
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