US open: Stocks in the red as consumer sentiment tumbles to 12-month low

US equity markets slid early on Friday, as consumer sentiment dropped to its lowest level in a year.

Shortly after 1500 BST, the Dow Jones Industrial Average was down 64 points to 16,266.63, while the S&P 500 and the Nasdaq were seven and 19 points lower, respectively.

Volatility in China and the uncertainty surrounding the outcome of next week’s Federal Reserve meeting have led to big swings in recent weeks.

“Global volatility appears to be on the wane as we approach the end of the week, with fundamental releases somewhat thin on the ground ahead of an absolutely crucial week to come in financial markets,” said IG’s market analyst Joshua Mahony.

Consumer sentiment Stateside takes a hit

US consumer confidence declined sharply in September, declining to its lowest level in a year, figures released on Friday showed. The University of Michigan index fell to 85.7 in September from 91.9 in the previous month, falling short of analysts' expectations for a 91.1 reading.

The US producer price index, which measures the prices companies receive for goods and services, was unchanged in August after rising 0.2% in July, according to data released by the Bureau of Labor Statistics.

Excluding food and energy, core prices were up 0.3% in August, versus consensus expectations for a 0.1% drop month-on-month. Over the year, prices were down 0.8%.

"The August report suggests a split in producer price pressures, with goods prices and in particular energy goods being a drag," analysts at Barclays said in a note.

"Services prices, which are probably a better measure of domestically driven price pressures, were solid, however."

Elsewhere, Asian stocks ended mostly lower, as energy companies slid after Goldman Sachs warned oil prices could hit as low as $20 per barrel.

Hong Kong’s Hang Seng index fell 0.27% and Japan’s Nikkei 225 dropped 0.19% while the Shanghai composite rose 0.07%.

European equities slumped but remained on track for weekly gains, while oil prices fell sharply, after Saudi Arabia officials intimated they will not back an emergency OPEC meeting.

West Texas Intermediate lost 2.96% to $44.60 a barrel, while Brent dropped 2.62% to $47.64 a barrel. Gold futures slid 0.70% to $1,101.50, while the dollar was broadly flat against the main currencies.

Grocery chain Kroger rose 3.87% after posting better-than-expected second quarter earnings ahead of the bell, while Pfizer slid 0.46% after a UK judge ruled against the drug maker in a patent case involving its Lyrica drug.