POINT MARKETS-China and oil push back Wall Street (updated) - 09/11/2018 23:41:54

(Updated with tobacco sector, rates and exchange rates)
    * The decline in oil fuels fears over the
growth
    * The drop in producer prices in China worries
    * Fear of restriction on e-cigarettes, the sector
recedes
    * Dow Jones lost 0.77%, S & P 0.92%, Nasdaq 1.65%
    * Over the week, the Dow took 2.8%, the S & P 2.1%, the Nasdaq
0.7%

    by Sinéad Carew
    NEW YORK, Nov 9 (Reuters) РThe New York Stock Exchange has
ended down for the last session of the week, with the
decline in oil prices, following the announcement of the
US Federal Reserve still planning a lawsuit
the gradual rise in its rates, and after
Chinese people are concerned.
    The Dow Jones Index .DJI lost 201.92 points, or 0.77%,
at 25,989.30. The S & P-500 .SPX, wider, lost 25.82
points, or 0.92%, to 2,781.01. The Nasdaq Composite .IXIC has
fell by 123.98 points (-1.65%) to 7.406.90 points.
    Over the week as a whole, the Dow Jones gained 2.8%, the
S & P-500 2.1% and Nasdaq Composite 0.7%.
    The market sentiment has been chilled by the announcement in China
a further slowdown in the producer price index
and a decline in auto sales, which has revived
worries about the growth of the world's second largest economy.
    These signs of slowdown in China, first importer
of oil, contribute to the decline of the crude, in the fear that the
world market is in a situation of oversupply.
    "Many investors consider oil prices
as a general indicator of the global economy and its
weakness is not seen favorably, "notes Scott Brown,
responsible for economic research at Raymond James.
    In a context of growing tensions between Washington and
Beijing on trade, Chinese official statistics
showed that producer prices had fallen in
October for the fourth month in a row, due to the
weak domestic demand and activity
manufacturing, while car sales declined
they also for the fourth time in a row.
    In addition, the decision Thursday of the Fed to leave his policy
unchanged monetary policy did not surprise investors but
many observers, statements from the central bank
suggest that it is moving towards a further rate hike
the outcome of its next meeting on December 18 and 19, rise
which would be the fourth of the year.
    According to the CME Group FedWatch barometer, the probability
an increase of 25 basis points of interest rates the month
next is now estimated at 75.8% against 71.1% Thursday.
    
    OIL
    Crude prices remained penalized by fears
over supply situation in the world market, in
a context of expected slowdown in Chinese demand.
    December contract on US light crude (West Texas
Intermediate, WTI) CLc1 lost 0.79% to 60.19 dollars,
down for the tenth day in a row, its longest phase of
since July 1984. He spent the day under the
threshold of $ 60 per barrel, the lowest since early April.
    North Sea Brent LCOc1 yielded 0.67%
at 70,18 dollars. It dropped below $ 70 in a meeting for
the first time since early April, showing a decline of about
20% from its peak of four years hit early October, this
which reflects a bear market.
    "What a difference in a month!", Notes Michael Tran, in charge
of the commodities strategy at RBC Capital Markets.
    "The market sentiment has gone from the most
bullish for years, many stakeholders expecting
even to spend the 100 dollars just a few weeks ago,
to the most bearish sentiment since the fall of 2016. "

    VALUES
    The S & P Energy Sector Index .SPNY declined
0.37%, having lost 2.2% Thursday, with oil prices.
The core resources sector .SPLRCM declined 1.37%.
    The .SPLRCT High Tech Index fell
1.66%, with Apple AAPL.O (-1.93%), the sector being sealed by
the risk aversion that has seized investors.
    General Electric GE.N fell 5.71%, falling below
nine dollars for the first time since March 2009.
J.P. Morgan lowered his price target from $ 10 to $ 6.
    The financial sector also fell .SPSY (-0.96%),
including Citi C.N (-2.98%) after the announcement the day before that a
group of investors sues 16 major banks,
including Citi, for manipulation of exchange rates.
    Energeticians, including PG & E PCG.N (-16.49%) and Edison
 EIX.N (-12.12%) fell, with fires in California having
left thousands of households without gas or electricity.
    Cigarette manufacturers fell as a result of a
statement from a manager that the Food and Drug
Administration (FDA) would ban the sale of cigarettes
electronics with fruit and candy scents, which seduce
teens in grocery stores and gas stations.

    INDICATORS OF THE DAY
    In terms of indicators, producer prices at the
United States recorded in October their largest increase of one
month on the other for six years but the tensions
Underlying inflationary conditions remain contained.
    The mood of American households has deteriorated a little less
than expected in November, show Friday the first results
of the monthly survey of the University of Michigan.
    
    THE SESSION IN EUROPE
    European stock markets ended down also
Friday, risk aversion having gained the upper hand for
same reasons – oil, China and Fed – as on Wall Street.
    In Paris, the CAC 40 .FCHI index lost 0.48% to 5.106.75
points and the British Footsie .FTSE gave up 0.49% while
the German Dax .GDAXI ended almost unchanged (+ 0.02%).
    The EuroStoxx 50 .STOXX50E index lost 0.25%, the
FTSEurofirst 300 .FTEU3 0.36% and Stoxx 600 .STOXX 0.37%.
    Over the week as a whole, the Stoxx 600 gained 0.46%
but the CAC 40 shows only a symbolic progression of 0.09%.
    The largest sectoral decline is for the
raw materials .SXPP (-3.41%), a consequence of the decline in
industrial metals. The oil sector .SXEP dropped 1.41%.
    Victims of the downward revision of their forecasts of
results for 2018, Nexans NEXS.PA fell 14.85% and
the German Thyssenkrupp TKAG.DE of 9.08%.
    
    RATE
    US bond yields lost ground
in the context of risk aversion. The 10 years lost near
five basis points at 3.18%, share clearances
favoring a return on sovereign debt. US10YT = RR
    The yield of the German Bund of the same maturity is ironed
under 0.41%. DE10YT = RR. Its Italian equivalent was almost
stabilized at 3.41% after a peak at 3.461. IT10YT RR =
    
    EXCHANGE
    The dollar index came close to a 16-month peak against
the euro, taking advantage of its safe haven status and after
confirmation of the Fed's willingness to raise rates. EUR =
    The euro is also penalized by divisions between
Europe and Italy on Rome's estimated budget. The
single European currency is trading around 1.1335 dollar. EUR =
    Sterling stabilized after losing nearly 0.6%
against the dollar GBP = and the euro EURGBP = following the
resignation of Jo Johnson, British Secretary of State for
Transport. The brother of Boris Johnson denounced on this occasion
the "delusional" negotiations on Brexit carried out by the
Prime Minister Theresa May.

    FOLLOW MONDAY:

 (Sinead Carew and Sruthi Shankar, Laetitia Volga and Juliet
Rouillon for French service)
 
 

                      .

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