Stock market today: Wall Street retreats after Moody’s downgrades China’s credit rating – RochesterFirst

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Wall Street headed lower early Tuesday after Moody’s Investor Service downgraded China’s sovereign debt rating as the country’s real estate crisis seeps into its local government and private financing.

Futures for the Dow Jones Industrial Average and the S&P 500 lost 0.3% and 0.4%, respectively.

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In Asian trading, Hong Kong’s Hang Seng dropped 1.9% to 16,327.86, while the Shanghai Composite lost 1.7% to 2,972.30 as anxiety flared over weakness in the world’s second-largest economy.

Credit rating agency Moody’s cut its outlook for Chinese sovereign bonds to negative Tuesday, citing risks from a slowing economy and a crisis in its property sector.

Moody’s said the downgrade, its first for China since 2017, reflects risks from financing troubles of local and regional governments and state-owned enterprises.

Slowing economic growth in China weighed on U.S. markets that have been buoyed by signs of easing inflation and the potential for an end to the series of interest rate hikes put into place by the U.S. Federal Reserve to curb rising prices.

This week will bring several key updates on the economy.

The Institute for Supply Management will release its November report on the services sector Tuesday. The sector accounts for the majority of jobs in the U.S. The report could provide more insight into consumer spending and the jobs market.

The government will release its October update on job openings on Tuesday and a weekly report on applications for unemployment benefits on Thursday.

The government’s monthly jobs report for November arrives Friday. Analysts polled by FactSet believe U.S. employers added 175,000 jobs last month. They forecast that the unemployment rate remained steady at 3.9%.

Japan’s benchmark Nikkei 225 slipped 1.4% to finish at 32,775.82. Australia’s S&P/ASX 200 dipped 0.9% to 7,061.60. South Korea’s Kospi shed 0.8% to 2,494.28.

A key report on Japanese inflation showed core consumer prices in Tokyo, which excludes volatile food prices, rose 2.3% from a year ago, slowing from previous months’ increases.

In Europe at midday France’s CAC 40 and Germany’s DAX each rose nearly 0.3%, while Britain’s FTSE 100 fell 0.5%.

Benchmark U.S. crude added lost 2 cents to $73.02 a barrel. It fell 1.4% on Monday. Brent crude, the international standard, fell 5 cents to $77.98 a barrel.

The U.S. dollar fell to 147.07 Japanese yen from 147.19 yen. The euro cost $1.0820, down from $1.0838.

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