Stocks, Oil Fall on Weak China Data; SBB Sinks:
Swedish landlord SBB delays dividend, cancels rights issue
Saudi oil giant Aramco rallies amid plans to boost dividend
Markets fell broadly after Swedish landlord SBB halted dividends and economic data from China was weaker than expected.
European stocks and US futures traded lower on Tuesday, along with oil. SBB shares lost 5.5%, adding to a 20% plunge yesterday, with investors increasingly worried about the effects of a funding squeeze across the real estate industry.
Sentiment was also hurt by a report showing a steep drop in Chinese imports last month, a sign that the economy’s recovery from Covid lockdown isn’t as strong as many had hoped. The Hang Seng Index shed more than 2%.
Among individual stocks, there were some standout winners. Palantir Technologies Inc. rallied as much as 21% in US pre-market trading after saying that demand for its new artificial intelligence tool is “without precedent.” Saudi oil producer Aramco gained as the company added a new dividend.
PayPal Holdings Inc. dropped after lowering its guidance. PacWest Bancorp sank 12% amid lingering worries about the health of US regional banks.
Key events this week:
- US President Joe Biden scheduled to meet with congressional leaders on debt limit, Tuesday
- New York Fed President John Williams speaks to Economic Club of New York, Tuesday
- US CPI, Wednesday
- China PPI, CPI, Thursday
- UK BOE rate decision, industrial production, GDP, Thursday
- US PPI, initial jobless claims, Thursday
- Group of Seven finance minister and central bank governors meet in Japan, Thursday
- US University of Michigan consumer sentiment, Friday
- Fed Governor Philip Jefferson and St. Louis Fed President James Bullard participate in panel discussion on monetary policy at Stanford University, Friday.