Indices Slide as Traders Mull Economic | Data Daily Market Analysis

Key events:

Eurozone - Core CPI (YoY) (Aug)

Eurozone - CPI (YoY) (Aug)

Italy - Italian CPI (MoM) (Aug)

Canada - Wholesale Sales (MoM) (Jul)

Thursday trading U.S. stock indices ended in decline amid rising government bond yields and after the publication of statistics on retail sales and industrial production in the U.S. for August.

Investors' expectations of a further Federal Reserve rate hike after the release of U.S. inflation data fueled growth in the bond market, which triggered a decline in shares. Traders estimate a 74% chance of another 75bp rate hike by the U.S. central bank in September and a 26% chance of a 1bp hike, according to CME Group. Against this backdrop, the 10-year U.S. Treasuries yield rose to 3.458% on Thursday from 3.411% on Wednesday.

The Dow Jones Industrial Average index fell 173.27 points (0.56%) Thursday to 30961.82 points. The Standard & Poor's 500 fell 44.66 points (1.13%) to 3,901.35 points. The Nasdaq Composite lost 167.32 points (1.43 percent) to 11552.36 points.

The chart above shows yesterday's drop in three major US indices

The stocks of the railroad companies grew vigorously after the White House informed that the largest railroad operators of the USA had reached the preliminary agreement with the workers' trade unions and thus averted the strike planned for Friday. Nevertheless, the pace of the rise in stocks declined by the end of the session as the general decline in the market.

The capitalization of Alcoa (NYSE: AA), the largest U.S. aluminum producer, fell by 3.7%. Alcoa Chief Financial Officer William Oplinger said the company is under pressure due to higher energy costs and lower metal prices, resulting in lower Q3 earnings.

The AA chart shows an almost 13% decline within the last several days

Traders yesterday also analyzed statistical data on U.S. retail sales, which may point to the level of consumer demand and the state of the country's economy, about 70% of which is driven by consumer spending.

Retail sales in the country rose 0.3 percent month-over-month last month, the nation's Commerce Department said. Analysts polled by Bloomberg had expected a 0.1 percent decline, and Trading Economics had forecast that sales would remain at July levels.

Federal Reserve data showed that U.S. industrial production in August declined 0.2 percent from the previous month. Analysts polled by Trading Economics had forecast an average increase of 0.1%.

At the same time, at the end of yesterday's trading, the European stock market also declined, ending in a minus for the third consecutive session. Investors yesterday evaluated statistical data and corporate news.

A UK100 chart

Consumer prices in France, harmonized with the standards of the European Union, in August rose by 6.6% year on year, according to final data from the country's statutory administration. Earlier, a 6.5% rise was reported, and experts did not expect a revision. However, inflation slowed from 6.8% in July.