The Asian superpower's export growth slows because of weakness in the European economy. Eurozone leaders meet to approve a bailout for Greece. Gold and oil prices fall.
Stocks were wavering Monday as China showed signs of slowing economic growth due to continued weakness in Europe.
The Dow Jones Industrial Average ($INDU) was gaining 4.6 points at 12,926. The S&P 500 ($INX) was down 3.1 points at 1,367 and the Nasdaq ($COMPX) was shedding 10.4 points at 2,977.
China reported slower than expected export growth in the last month. The country's trade deficit hit $31.5 billion in February, its largest trade deficit since 1989, as exports to debt-troubled Europe weakened. Exports rose at 18.4%, however, they were 23.6% lower than January's levels. The data, together with recent reports on factory output and retail sales, suggests slowing growth in China. On the upside, Japan reported that it's machinery orders rebounded in January, suggesting future growth momentum.
Japan's Nikkei Average closed down 0.4% and Hong Kong's Hang Seng gained 0.23%.
“Be prepared for a slight pullback and definitely more volatility,” said Mark Martiak, senior wealth strategist with Premier Financial Advisors. “The steep decline last week prepared us for it,” he added, referring to last Tuesday selloff in reaction to China’s announcement that it will target a lower 7.5% GDP growth for 2012.
With no economic data scheduled for release out of the U.S., investors continue to focus on Greece's progress in getting a second bailout. Last week, the country successfully completed its debt swap with private investors, a deal that was subsequently declared as a "credit event" that would trigger payouts related to credit default swaps. Today, Euro leaders are expected to meet in Brussels in order to sign off of on $170 billion worth of aid for Greece.
Germany's DAX was losing 0.25% while London's FTSE was shedding 0.32%.
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