China industrial profits slide in latest indication of malaise Spanish bonds advance after pro-independence vote falls short Share on Facebook Share on Twitter European stocks slid, with automakers and mining companies leading declines, as commodities slipped amid deepening concern that growth in China is slowing. The Stoxx 600 Basic Resources Index of commodity producers was on course for its lowest close in more than six years, with Glencore Plc tumbling more than 15 percent to a record. Oil halted a two-day gain, while the yen strengthened. Spanish bonds climbed after pro-independence parties came up short in Catalan elections. Profits at Chinese industrial companies plunged 8.8 percent in August from 12 months earlier, data on Monday showed, with losses deepening even after five interest-rate cuts since November and government efforts to accelerate projects. Efforts by Federal Reserve policy makers including Chair Janet Yellen to talk to up the prospect of higher borrowing costs in 2015 have so far failed to impress traders, who rate the chance of liftoff this year at less than 50 percent. “The economic recovery is turning out to be a bit lackluster,� said Rosamunde Price, who helps oversee about $14 billion as chief investment strategist at Seven Investment Management in London. “People are worrying global growth may have already passed its peak, plateaued, and is possibly turning down.� The Stoxx Europe 600 Index dropped 0.6 percent at 10:04 a.m. in London, with carmakers down 3.2 percent and basic resources producers off 3.3 percent. Stocks Vodafone Group Plc lost 3.8 percent, heading for its lowest price since November, after saying talks with Liberty Global Plc about a possible exchange of assets ended. Volkswagen AG slid 6.1 percent, falling for the second straight day, even as new Chief Executive Officer Matthias Mueller pressed the board to move ahead with a reorganization he helped devise before the company was caught up in an emissions-cheating scandal. In the U.S., Standard & Poor’s 500 Index E-mini futures expiring in December fell 0.2 percent after the gauge slid for a second week. The gauge has lost 9.2 percent from its record in May and is down 6.2 percent this year. Cuts to global earnings estimates outnumber increases by the most in three years, and the pessimism could reach levels last seen during the financial crisis, based on an index tracking the changes compiled by Citigroup Inc. Personal income and spending in the U.S. grew in August at the same pace as the previous month, while pending home sales advanced less than in July, economists estimate. Bonds Spain’s 10-year bond yield fell seven basis points to 1.97 percent. Catalan President Artur Mas’s gamble, to run his pro-business Convergencia party together with the Catalan Republican Left in a common platform demanding a separation from Spain, failed to gain a majority of votes. To pursue independence with an absolute majority in the 135-seat regional assembly, he’ll need to form an alliance with an anti-capitalist party, the CUP, which has pledged not to let Mas return as regional leader. Benchmark German 10-year bund yields fell one basis point to 0.63 percent, while the yield on similar-maturity U.S. Treasuries slid one basis point to 2.15 percent. Currencies The yen rose 0.3 percent to 120.22 per dollar, and added 0.4 percent to 134.52 per euro. It appreciated on demand for haven investments. The increase helped keep Japan’s currency the best performer in the past three months in a basket of 10 developed-nation currencies, climbing almost 8 percent. Commodities West Texas Intermediate futures fell as much as 1.3 percent. U.S. crude stockpiles are still almost 100 million barrels above the five-year average for this time of the year even after dropping for two straight weeks. The weaker data from China also sparked losses in some metals. Platinum lost 1.9 percent and reached a six-year low. Palladium retreated 1.2 percent, paring gains from last week’s 9.5 percent rally, which was the biggest since 2011. Emerging Markets The MSCI Emerging Markets Index lost 0.4 percent, extending last week’s 4.9 percent decline, the biggest drop for the period in five weeks. Benchmark gauges in Indonesia, Thailand and the Philippines slid at least 1 percent.

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