Durable Goods Rise More Than Views, But Unlikely to Stop Sell-Off

The Commerce Department said Monday that durable goods orders rose 3.4 percent in June, beating expectations for a 3 percent gain. However, despite the upbeat data, Wall Street is posed to follow global markets — excluding Australia — in an overnight sell-off triggered by a plummet in China’s SSE Composite Index (SHA:000001).

Excluding the volatile transportation component, durable goods orders rose 0.8 percent, which was also above median forecasts for a 0.5 percent increase. But global worries dominated Wall Street on Monday morning after shares of China stocks plunged nearly 8.5 percent, marking the biggest one-day drop since 2007. The sell-off in China began in June, which saw a massive 30 percent in losses.

In Europe, Britain’s FTSE 100 shed 0.1 percent to 6,573.22 and Germany’s DAX slipped 1.3 percent to 11,198.22. France’s CAC 40 fell 1.3 percent to 4,990.17. On Wall Street, S&P 500 and Dow futures were both down 0.3 percent.