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Stocks Resume Slide Despite Strength in Retail Sales

EQUITIES
  • A better-than-expected set of August retail sales failed to prop up equities Thursday, with the opening bell reversing the improvement overnight in futures. All three major indices edged lower by 0.6% or so with broad-based losses across most US sectors.
  • Energy and materials names underperformed, largely in a reversal of strength in the sector as buoyant energy prices prompted a sharp rally earlier in the week. Consumer discretionary names were lower, but shielded from the bulk of the losses thanks to better sales data.
  • Gold and precious metal miners took a particular hit, with Freeport-McMoRan off near 8% as spot gold and silver prices fell 2% and 4% respectively.
  • Continental trade was more positive, with Spain's IBEX-35 outperforming to post gains of 1.1% at the close. The EuroStoxx50 edged higher by 0.6%.

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