Reply #29: Chinese growth spooks Wall St

[Ghost Dog]

http://mwprices.ft.com/custom/ft2-com/html-story.asp?pulse=true&siteid=ft&dist=ft&guid=%7B01c4a9d2%2D2610%2D4873%2Db12b%2Dc3e4fc9c218a%7D

Wall Street stocks were set for a sharply lower start on Thursday as concerns about the Chinese economy overheating sparked selling of global equities. The fall in futures – which followed the Dow Jones Industrial Average setting a record high yesterday – came in spite of strong earnings updates from Merrill Lynch, Ebay and Schering Plough. Chinese gross domestic product and March inflation data was well in excess of economists’ forecasts, raising fears that the country’s interest rates may need to be raised to cool the rapid pace of growth. Less than an hour before the opening bell, S&P 500 futures were down 7.4 points at 1,472.9 while Nasdaq futures were down 11.8 points at 1,836.5. Futures for the Dow Jones Industrial Average were down 61 points at 12,797. “It is rather clear that there are reasons for investors to worry. The new highs are spotty, not broad based”, said Marc Pado, chief market strategist at Cantor Fitzgerald. “The bears need a catalyst and may have gotten one in China’s GDP report, showing an explosive 11.1 per cent gain in the first quarter. The fear is that China will have to raise rates or let its currency appreciate quickly. Stronger Asian currencies raise the fears of an unwinding of the carry trade.”