Caterpillar Falls as Asian Construction Equipment Sales Lower

Caterpillar Inc spooked investors for a second straight quarter on Wednesday with a 4 percent drop in Asia-Pacific construction equipment sales that pointed to more weakness in China, its key growth market.

Shares of the heavy-duty equipment maker, a bellwether for economic activity whose results often influence global stock market sentiment, fell more than 2 percent, overturning an initial rise due to overall results that were flattered by a tax gain.

The world’s largest heavy duty equipment maker took a hit in the fourth quarter from an unexpectedly sharp slowdown in China, which accounts for up to 10 percent of company sales. The company had then warned that it expected construction growth in the world’s second largest economy to cool after two years of significant growth.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza