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Global stocks down on weak Chinese data

Agence-France Presse

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt=" A view of buildings early morning in the central business district of Beijing, China on January 8, 2023. Mark R. Cristino, EPA-EFE" src="https://sa.kapamilya.com/absnews/abscbnnews/media/2023/business/04/16/11226957_epa-efe.jpg"/><figcaption>A view of buildings early morning in the central business district of Beijing, China on January 8, 2023. <em>Mark R. Cristino, EPA-EFE</em></figcaption></figure></div><p>NEW YORK -- Global stocks fell Tuesday after disappointing data from China deepened concerns over its economy, while strong US retail numbers and worries surrounding the American banking sector cast a pall on Wall Street.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/video/business/08/15/23/philippine-shares-post-modest-gains-to-settle-at-6335">Philippine shares post modest gains to settle at 6,335</a></li></ul><p>US stocks retreated with major banks including JPMorgan Chase and Wells Fargo ending the day more than two percent lower, after an analyst at ratings agency Fitch warned of the risks of a banking industry downgrade.</p><p>The Dow lost 1.0 percent while the broad-based S&amp;P 500 slid 1.2 percent.</p><p>European markets closed in the red following a largely negative session in Asia as well. Tokyo finished higher but Hong Kong shed 1.0 percent and Shanghai lost 0.1 percent.</p><p>Stronger than expected US retail sales data kept Wall Street stocks &quot;heavy&quot; as it increased the likelihood of the Federal Reserve hiking interest rates again, said Edward Moya, senior market analyst at OANDA.</p><p>&quot;There isn&#x27;t enough growth in China and, in the market&#x27;s mind, there is perhaps too much growth in the US for the Fed&#x27;s liking,&quot; added Briefing.com analyst Patrick O&#x27;Hare.</p><p>&quot;It is adding to the uncertainty of what comes next, and that uncertainty is adding to the August inclination to take some money off the table.&quot;</p><p>Chinese data released Tuesday showed slowing growth in July retail sales, while industrial production fell short of analyst expectations and unemployment crept up.</p><p>Worries have grown over China&#x27;s heavily indebted property sector and the future of massive developer Country Garden, which has warned of huge losses.</p><p>The central bank also cut a key interest rate in a bid to boost growth, a sign that the country&#x27;s post-Covid rebound is stuttering.</p><p>The measure &quot;is unlikely to have much lasting benefit in the absence of government spending,&quot; noted Stephen Innes of SPI Asset Management.</p><p>It &quot;could even be perceived as unfavourable in the sense that policymakers are starting to hit the panic button,&quot; he added.</p><p>Beijing also said it would stop reporting the youth unemployment rate, which hit a record 21.3 percent in June, prompting concerns over transparency.</p><p>&quot;The lack of transparency continues to irk investors,&quot; said Innes, noting that &quot;growing concerns about Chinese property and the prospect of higher US rates have dampened risk appetite.&quot;</p><div><strong> China is struggling</strong></div><p>Oil prices sank again on Tuesday over fears of weakened demand from China, the world&#x27;s top crude importer.</p><p>The drop in copper and oil prices &quot;reinforces the view that China is struggling, where private sector demand remains rather weak,&quot; said City Index analyst Fawad Razaqzada.</p><p>On foreign exchange markets, the ruble was trading around 98 to the dollar after Russia hiked its key interest rate to 12 percent -- following an emergency central bank meeting to stem a slide in the currency.</p><p>On Monday, the ruble crashed past 100 to the dollar, its lowest level since March 2022 on the back of Russia&#x27;s invasion of Ukraine and the imposition of Western sanctions.</p><p>Elsewhere, the dollar was holding steady above 145 yen, its strongest level against the Japanese currency since November.</p><div><strong> RELATED STORY: </strong></div><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=2763900" width="100%"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div>

Global stocks fell Tuesday after disappointing data from China deepened concerns over its economy.