Banks help drive stocks lower in early trading on Wall Street

Stocks opened lower on Wall Street on Friday, keeping the S&P 500 on track for its second straight weekly decline. The benchmark was down 0.2% at the start. JPMorgan Chase led banks lower with a 5.3% drop after it said its profits fell 14% in the last quarter from a year earlier as its trading business slumped. Traders were also disappointed to see retail sales tumble 1.9% in December after Americans cut spending amid product shortages, rising prices and the appearance of the omicron variant. . Treasury yields rose.

THIS IS A BREAKING NEWS UPDATE. AP’s previous story follows below.

BANGKOK (AP) — Stocks fell in Europe and Asia on Friday after a retreat on Wall Street that left the Nasdaq composite down 2.5%.

The German DAX lost 0.6% to 15,928.83 and the CAC 40 in Paris lost 0.7% to 7,145.19. Britain’s FTSE 100 edged down 0.1% to 7,556.29. On Wall Street, the Dow Jones and S&P 500 futures were both up 0.1%.

China announced that its global trade surplus jumped nearly 30% in 2021 to $676.4 billion. The trade surplus in December rose 20.8% from a year earlier to a monthly record of $94.4 billion, customs data showed on Friday.

Exports hit $3.3 trillion in 2021 despite shortages of processor chips for smartphones and other products as global demand rebounded from the pandemic. Manufacturers were also hampered by power rationing imposed in some areas.

South Korea’s central bank raised its key rate from 1.25% to 1.25%, acting to counter inflation. But as it recalls monetary stimulus, after raising the benchmark rate twice so far, the government on Friday announced 14 trillion won ($11 billion) in additional spending, mostly to help small businesses to recover from the impact of waves of coronavirus outbreaks.

Inflation soared to 3.7% in December, and the latest rate hike “sends a strong signal that the Bank is prioritizing tackling inflation and financial imbalances,” said Alex Holmes of Capital Economics. in a report. “It’s pretty clear that more hikes are on the way. imminent,” he said.

In Asian trade, the South Korean Kospi fell 1.4% to 2,921.92.

The Shanghai Composite lost 1% to 3,521.26 and the Hang Seng in Hong Kong was down 0.2% to 24,383.32. Tokyo’s Nikkei 225 fell 1.3% to 28,124.28.

In Sydney, the S&P/ASX 200 lost 1.1% to 7,393.90.

The Indian Sensex was down 0.1%.

Tech companies led a sell-off on Wall Street on Thursday that pulled major indexes into the red for the week.

The S&P 500 fell 1.4% to 4,659.03. The tech-heavy Nasdaq fell 2.5% to 14,806.81. The Dow Jones Industrial Average fell 0.5% to 36,113.62.

Shares of smaller companies also fell. The Russell 2000 slipped 16.62 points, or 0.8%, to 2,159.44.

The selloff came as investors weighed corporate earnings reports and new data pointing to higher prices at the wholesale level. The Labor Department reported Thursday that its producer price index, which measures prices at the wholesale level, jumped a record 9.7% for all of 2021. The increase set a record year and provides further evidence that inflation is still present at all levels of the US economy.

Inflation has been front and center for investors as they try to gauge the impact of rising prices on businesses, consumers and the Federal Reserve’s interest rate policy in 2022.

Benchmark U.S. crude oil rebounded, gaining 50 cents to $82.62 a barrel in electronic trading on the New York Mercantile Exchange. It lost 52 cents to $82.12 on Thursday.

Brent crude, the basis of the international oil price, rose 77 cents to $85.24 a barrel.

The dollar weakened to 113.83 Japanese yen from 114.18 yen. The euro fell from $1.1457 to $1.1464.

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