Traders registered their nervousness about the direction of the global economy on Tuesday morning, as U.S. stock futures extended the downward trend of the past week. The Conference Board, an independent business research association, revised its figures on China’s Leading Economic Index to show a slowing pace of economic expansion.
“There is no strong basis for assuming accelerating growth,” said Conference Board economist Bill Adams. ” Consumer expectations fell in April and new export orders have been weakening for most of the previous six months.”
China has become a major consumer in the past decade, both of raw materials and commodities for its factories and of finished goods for its burgeoning middle class. Many economists and analysts have pinned hopes for a general recovery on growing Chinese consumption, which now looks as if it may falter
Dow Jones Industrial Average Index futures fell 126 points by 9:15am, while S&P 500 futures fell 15.20 points and Nasdaq 100 futures fell 29.25 points. The biggest U.S. aluminum maker, Alcoa, fell almost 2 percent because of its close ties to Chinese industries, which now may demand less of the company’s main product.
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