Inventories fall as global manufacturing data weakens

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US stocks followed declines in European equities after a new report showed the German manufacturing industry was sinking deeper into a contraction, fueling fears of an economic slowdown.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The S & P 500 (^ GSPC) lost 0.54%, or 15.5 points, at 9:31 am ET. The Dow (DJI) fell 0.64%, or 166 points, while the Nasdaq (^ IXIC) fell 0.49%, or 36.75 points. "data-reactid =" 16 "> The S & P 500 (^ GSPC) lost 0.54%, or 15.5 points, at 9:31 am (ET) The Dow (^ DJI) lost 0.64 %, or 166 points, while the Nasdaq (^ IXIC) lost 0.49%, or 36.75 points.

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The key manufacturing sector of Germany & nbsp;contracted& nbsp; for the third consecutive month of March, according to an early reading of & nbsp;IHS Markit Monthly Survey. The index for the sector slipped to 44.7, the lowest reading since 2012 and lower than consensus estimates of 48. Readings below 50 indicate a contraction. "Data-reactid =" 17 "> The key manufacturing sector in Germany contracted for the third consecutive month in March, according to monthly readings from IHS Markit's monthly survey: the index for the The sector slipped to 44.7, the lowest since 2012 and lower than consensus estimates of 48. Values below 50 indicate a contraction.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The & nbsp;service sector in Germany, however, remained in expansionist territory with a reading of 54.9. It was slightly above expectations of 54.9, but was at its lowest level in two months. "Data-reactid =" 18 "> The service sector in Germany, however, continued to grow, with a reading of 54.9, slightly above expectations, at 54.9 years, but at the lowest level in two months .

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "New orders for the export of manufactured products Germans fell for the seventh consecutive month and at their fastest pace since 2012. IHS Markit & nbsp;assigned& nbsp; this has the effect of slowing demand in the automotive sector and "delaying decision-making" because of "uncertainty" over trade relations between Brexit and China. "data-reactid =" 19 "> New orders for the export of German manufactured goods have fallen for the seventh consecutive month and at their fastest pace since 2012. IHS Markit attributed this drop to a higher demand. weak in the automotive sector and a "delay in decision-making" due to "uncertainty" on trade relations between Brexit and the United States.

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The latest study of the London-based research firm on the Germany comes as the European Central Bank earlier this month & nbsp;unveiled a new program& nbsp; offer cheap long-term loans to banks from all over the EU, suggesting that central bankers were aware of the weakness of the major economies of the euro area. "data-reactid =" 20 "> The latest study of the London-based research firm on Germany The European Central Bank unveiled at the beginning of this month a new program aimed at providing cheap long-term loans to banks from across the EU, suggesting that central banks were aware of the weakness of the major economies of the euro area.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The euro fell against the dollar (EURUSD = X) at 1.13 USD after the disappointing reading of Germany, the largest economy in the European Union. "data-reactid =" 21 "> The euro depreciated against the dollar (EURUSD = X) at 1.13 USD after the disappointing reading of Germany, the largest economy in the world. # 39; EU.

IHS Markit will release preliminary results for the US Manufacturing and Services PMI at 9:45 am ET. Consensus economists expect the manufacturing PMI to record a reading of 53.5, down from 53 in February. The PMI services index is expected to decline slightly from 56 to 55.5.

Factory workers — German manufacturing has contracted at the fastest pace since 2012 (Getty Commercial)

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Elsewhere, the leaders of the European Union on Thursday & nbsp;agreed to provide& nbsp; United Kingdom with a Brexit extension exceeding the March 29 deadline. Under the terms of the agreement, the Brexit will be held on May 22 if Prime Minister Theresa May can convince Parliament to accept her exit plan, which members have now rejected twice. The Brexit deadline will be April 12 if May fails to convince legislators to ratify her plan. "Data-reactid =" 34 "> Elsewhere, leaders of the European Union decided Thursday to grant the UK an extension of Brexit beyond the deadline of 29 March. of the agreement, the Brexit will take place on May 22 if Prime Minister Theresa May can convince Parliament to accept her exit plan, which deputies have now voted twice.The Brexit deadline will be April 12 if May does not convince legislators to ratify it.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The book & nbsp;slightly elevated& nbsp; against the dollar (GBPUSD = X) to more than 1.31 USD after the EU has granted the extension. "data-reactid =" 35 "> The pound has risen slightly against the dollar (GBPUSD = X) to exceed 1.31 USD after the EU has granted the extension.

STOCKS

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Nike (NKE, -4.62%) prolonged shares decline after the & nbsp;reported business& nbsp; weak sales in its largest geographic area in North America for the third fiscal quarter. Domestic sales reached $ 3.81 billion, up 7% from the same quarter last year, but lower than expected by $ 3.85 billion. Adjusted total earnings for the quarter was high at 68 cents per share for a business turnover of $ 9.6 billion, while expected profits would be 65 cents for a single figure. business of $ 9.65 billion. Net income of $ 1.1 billion for the third fiscal quarter was reversed with a loss of $ 931 million for the same period last year, and gross margin increased 130 basis points at 45.1%. "Data-reactid =" 37 ">Nike (NKE, -4.62%) prolonged shares decline after the company announced weak sales in its largest North American geographic area for the third fiscal quarter. Domestic sales reached $ 3.81 billion, up 7% from the same quarter last year, but lower than expected by $ 3.85 billion. Adjusted total earnings for the quarter was high at 68 cents per share for a business turnover of $ 9.6 billion, while expected profits would be 65 cents for a single figure. business of $ 9.65 billion. Net income of $ 1.1 billion for the third quarter of fiscal year was reversed with a loss of $ 931 million for the same period last year, and gross margin increased from 130 basis points to 45.1%.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Tiffany (TIF, -4.59%) reported mediocre results for the vacation quarter comparable total sales of the same luxury jewelry seller's store & nbsp;went flat& nbsp; during the fourth quarter of the previous year. Adjusted earnings of $ 1.67 were 7 cents higher than expected and net sales of $ 1.32 billion were in line with expectations. Tiffany said he expects a drop in net sales in the first half due to lower spending on outside tourism, but expects an increase in net sales below a figure for fiscal year 2019. "data -reactid = "38">Tiffany (TIF, -4.59%) reported mediocre results for the vacation quarter Comparable same-store sales by the luxury jewelry seller were stable in the fourth quarter compared to the same period last year. Adjusted earnings of $ 1.67 were 7 cents higher than expected and net sales of $ 1.32 billion were in line with expectations. Tiffany said it expects a drop in net sales in the first half due to lower spending on outside tourism, but expects net sales growth of around 1 to 10 percent for the first half of the year. FY 2019.

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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Emily McCormick is a journalist for Yahoo Finance. Follow her on Twitter: @emily_mcck"data-reactid =" 53 ">Emily McCormick is a journalist for Yahoo Finance. Follow her on Twitter: @emily_mcck

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