US stock exchanges defy poor economic data

Weak economic data from China and the chaos in Afghanistan dampened sentiment on the US stock exchanges at the start of the week. Investors were worried that global economic growth could weaken. Stocks from sectors that are heavily dependent on the economy suffered price falls. The Dow Jones closed 0.3 percent higher at 35,625 points. The S&P 500 also gained 0.3 percent to close at 4,479 points. However, the Nasdaq composite fell 0.2 percent (14,793 points). In China, retail sales and industrial production remained below the analysts' expectations. According to economists, the rapidly expanding delta variant and government containment measures have taken their toll. "The question is what else could be affected by the Delta variant, not only in China but also worldwide and that has not yet been decided," said Sam Stovall, CFRA investment strategist. To this end, stockbrokers referred to the takeover of power by the Taliban in Afghanistan. The stock market has risen steeply for a considerable period of time, said stock trader Dennis Dick of brokerage firm Bright Trading. Now the market wants to take a break and take profits. "I think that over the weekend Afghanistan gave the stock market the excuse for it." The economic worries affected the oil price and other raw materials. US energy company stocks were under pressure. Conocophillips lost 2.1 percent, Exxon Mobil also lost 1.4 percent. Chevron lost 1.0 percent. Schlumberger even slipped around 2.7 percent. The shares of Freeport-McMoRan, the largest listed copper producer in the world, lost 3.3 percent. Electric car manufacturer Tesla's share was also under pressure on Monday. The papers lost 4.3 percent at times. The US traffic safety agency NHTSA initiated a formal investigation into the safety of the autopilot driver assistance system after a series of accidents involving Tesla cars and emergency vehicles. The shares of the Chinese streaming platform Tencent Music Entertainment Group temporarily plunged nine percent. The company Soros Fund Management of the billion dollar US investor George Soros had separated from shares in the company. Also on Europe's stock exchanges it went down on Monday. The Dax lost 0.3 percent to 15,925.73 points at the beginning of the week. On Friday he broke the psychologically important mark of 16,000 points for the first time. The EuroStoxx50 lost 0.6 percent to 4202.44 points and thus also ended its winning stretch.