During Wednesday’s Afternoon trade, Shares of United States Steel Corporation (NYSE:X), lost - 3.30% to $11.43, as following a drop in global crude steel output in August, making it the fourth successive month of declines.
Output last month reduced by 3% year-over-year to 132 million metric tons as Chinese output was down by 3.5% and Japanese output dropped by 5.8%, according to World Steel Association data, Reuters reports.
China, which accounts for half of the steel production in the world, has seen its output decline due to the country’s economic slow growth, which is leading to a lack of demand.
Steel prices have fallen as a result of China’s boost in exports, which has crowded the global market, Reuters added.
In the U.S., output dropped 10% as companies try to compete with cheaper imports.
India raised output by 2.8% because of the country’s growing economy, Reuters noted.
United States Steel Corporation produces and sells flat-rolled and tubular steel products in North America and Europe. It operates through three segments: Flat-Rolled Products (Flat-Rolled), U. S. Steel Europe (USSE), and Tubular Products (Tubular). The Flat-Rolled segment offers slabs, rounds, strip mill plates, sheets, and tin mill products.
Shares of JD.Com Inc(ADR) (NASDAQ:JD), declined - 4.07% to $24.51, during its current trading session, after the yuan weakened as China’s central bank lowered the midpoint rate.
The People’s Bank of China cut its daily reference rate by 0.07% to its lowest level since September 10, to 6.3721 per dollar from 6.3676 per dollar, according to Reuters.
Chinese manufacturing data due out tomorrow is predictable to show a decline in factory output for a seventh straight month, which gives China another reason to further cut interest rates, Bloomberg reports. The Fed is preparing to do the opposite and tighten monetary policy, with members saying they expect raised borrowing costs this year.
“A weaker fixing and the Fed members’ comments have pushed the yuan lower recently,” Kenix Lai, a foreign-exchange analyst at Bank of East Asia, told Bloomberg. “China’s economy is still going downhill and fundamentals are quite weak, which will keep pressuring the currency in the medium term.”
Shanghai’s onshore yuan, which can diverge from the People Bank of China’s reference rate by no more than 2%, fell by its biggest drop since September 9 recently, closing down by 0.11% to 6.3760 per dollar, according to Bloomberg.
JD.com, Inc., through its auxiliaries, operates as an online direct sales company in the People’s Republic of China. It primarily offers electronics and home appliances products; and general merchandise products, counting audio and video products, and books.
Finally, Eaton Corp plc (NYSE:ETN), declined -1.38% at Closed $53.00, even as Bernstein’s Steven Winoker argued that the company’s exposure to the Volkswagen (VLKAY) scandal should not significantly affect the stock, Barron’s reports.
Volkswagen stock has plummeted this week, after the company’s admission that it had cheated on U.S. emissions tests.
Global power administration company Eaton is exposed to Volkswagen, but only minimally so, Bernstein’s Winoker says, according to Barron’s.
Eaton’s vehicle unit comprises about 18% of total sales, but just 40% of that total is passenger vehicles and the Americas make up about 70% of that business, which comes out to an exposure below 5%. From that percentage, supercharged diesels are a smaller sub-set of which Volkswagen is an even smaller sub-set, Winoker explains, per Barron’s.
Eaton Corporation plc operates as a power administration company worldwide. Its Electrical Products segment offers electrical components, industrial components, residential products, wiring devices, and structural support systems, in addition to single phase power quality, emergency lighting, fire detection, circuit protection, and lighting products.
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