STOCK markets wavered yesterday, weighed down by concerns about China’s economy and fears of more US interest-rate hikes.

Apple shares tumbled for a second straight session on reports that China was banning central government officials from using iPhones at work.

A recent spate of solid US economic statistics has translated to worries that the Federal Reserve will continue to lift interest rates. Data yesterday showed new claims for US unemployment benefits came in at the lowest weekly level since February at 216,000. 

“That is really good news – economically speaking – but it is also news – monetary policy speaking – that will likely keep the Fed in a restrictive policy position for longer,” said market analyst Patrick O’Hare at Briefing.com.

The Fed has already hiked interest rates 11 times since March last year to control runaway inflation, raising its key lending rate in July to its highest level for 22 years. 

John Williams, head of the Federal Reserve Bank of New York, said while inflation has been “moving in the right direction,” policymakers have not ruled out additional hikes.

“Do we need to maybe raise rates again to make sure that we’re keeping that steady progress in terms of shrinking imbalances in the labour market, and bring inflation back down?” Williams said.

While the Dow eked out a gain, both the S&P 500 and Nasdaq fell again.

Europe’s main stock markets closed mixed, with data showing slight economic growth in the eurozone helping contain losses.

The eurozone economy eked out 0.1% growth in the second quarter, official data showed, but this was weaker than the prior estimate of 0.3%.

The European Union’s Eurostat data agency also revised its first-quarter figures, saying the economy grew 0.1% and did not stagnate as previously thought, but commentators say the outlook is still weak.

Asian equities sank, with sentiment also hammered by data showing China’s exports and imports plunged again in August, sparking slowdown fears and sending the onshore yuan to a 16-year dollar low.

The disappointing yet expected trade figures add to growing pressure on authorities to introduce fresh stimulus for the world’s number two economy even as the data showed some sign of improvement.

Oil prices dipped after having jumped higher following announcements earlier this week by Russia and Saudi Arabia they are extending production cuts through the end of the year.

“Crude oil prices appear to have topped out for the time being as concerns over weak economic activity bump against the prospect of tighter output restrictions,” said market analyst Michael Hewson at CMC Markets UK. 

Key figures around 2040 GMT

New York - Dow: UP 0.2% at 34,500.73 (close)

New York - S&P 500: DOWN 0.3% at 4,451.14 (close)

New York - Nasdaq: DOWN 0.9% at 13,748.83 (close)

London - FTSE 100: UP 0.2% at 7,441.72 (close)

Frankfurt - DAX: DOWN 0.1% at 15,718.66 (close)

Paris - CAC 40: FLAT at 7,196.10 (close)

EURO STOXX 50: DOWN 0.4% at 4,221.02 (close)

Tokyo - Nikkei 225: DOWN 0.8% at 32,991.08 (close)

Hong Kong - Hang Seng Index: DOWN 1.3% at 18,202.07 (close)

Shanghai - Composite: DOWN 1.1% at 3,122.35 (close)

Euro/dollar: DOWN at US$1.0701 from US$1.0727 on Wednesday

Dollar/yen: DOWN at  ¥147.25 from  ¥147.66

Pound/dollar: DOWN at US$1.2474 from US$1.2507

Euro/pound: FLAT at 85.76 pence

West Texas Intermediate: DOWN 0.8% at US$86.87 per barrel

Brent North Sea crude: DOWN 0.8% at US$89.92 per barrel – AFP, September 8, 2023.