US open: Stocks decline as Chinese data disappoints

US stocks were in the red after worse-than-expected Chinese trade data.

At 1430 GMT, the Dow Jones Industrial Average fell 0.48%, the S&P 500 shed 0.55% and the Nasdaq lost 0.60%.

Chinese exports plunged 25.4% in February from a year earlier, marking the biggest slump in more than five years and compared to analysts’ expectations for a 14.5% drop.

Imports decreased 13.8% year-on-year, more than forecasts for a 12% slide.

China’s trade surplus narrowed in February to $32.59​bn from $63.29​bn in January, below estimates for a $51.25bn surplus. ​​

“Chinese trade data showed February exports plunged 25.4% which has spooked markets already concerned about slowing global growth rather than adding to hopes of more stimulus from Beijing (too much work to do for policy makers?),” said Mike van Dulken and Augustin Eden at Accendo Markets.

“However, the Lunar New Year holiday may have interfered with the data.”

Oil prices turned positive, offering US equities some relief.

West Texas Intermediate crude rose 0.02% to $37.91 per barrel and Brent increased 0.46% to $41.03 per barrel at 1425 GMT.

However, Goldman Sachs said the recent surge in commodity prices was not sustainable and the rout was not over.

“In the current supply-driven market, demand hasn’t really changed, it takes lower prices to push and keep supply below demand to create a deficit. As a result, higher prices are much harder to sustain in a supply-driven market since supply is primed to return with higher prices,” the bank said.

A report on US crude oil inventories from the Department of Energy will be in focus amid concerns about the supply glut.

In corporate news, Shake Shack shares tumbled after the burger chain reiterated its expectations of slower sales growth this year.

On the upside, though, retailer Urban Outfitters surged after its fourth quarter results beat analysts’ expectations.

In currencies, the dollar was 0.43% higher versus the pound, 0.52% lower against the yen and 0.21% down against the euro.