Boeing shares lost about 4% of their value after news of a new aircraft order from China. Investors were hoping for a much larger contract, so even a large deal caused disappointment in the market.
Shares of the American aerospace corporation Boeing fell by about 4% amid news of the first aircraft order from China in several years, CNBC reports. The securities lost all the gains that had been observed since the announcement of CEO Kelly Ortberg's trip to China.
The decline in quotes was triggered by Donald Trump's statement on Fox News that Beijing had agreed to purchase 200 "large" Boeing aircraft. Despite China being the second-largest aerospace market in the world and crucial for the company's future, market participants perceived this deal as a significant disappointment. It remains unclear what specific type of aircraft the Chinese side is purchasing, and representatives of the corporation have not yet provided official comments.
The negative market reaction is linked to unmet expectations. In March, Bloomberg reported that the potential contract could include the delivery of up to 500 narrow-body 737 Max aircraft. Thus, the final figure of 200 units turned out to be significantly lower than initial expert estimates, which triggered a sell-off of shares against the backdrop of a general rise in American stock indices.
In the editorial's view, the situation with Boeing shows how sensitive the market has become to any news about China and major international contracts. Even the positive news of the return of Chinese orders could not support the company's shares, as investors were expecting a much larger agreement.
