Stock market today: Asia shares decline as faltering Chinese economy sets off global slide

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Asian shares have declined amid worries over discouraging data on China, as well as over the future of the U.S. economy.

Clifford Bennett, chief economist at ACY Securities, believes that strong U.S. consumer spending could be momentary and run out of steam.

Coming into this year, the expectation was that China’s economy would grow enough after the government removed anti-COVID restrictions to prop up a global economy weakened by high inflation. But China’s recovery has faltered so much that it unexpectedly cut a key interest rate on Tuesday and skipped a report on how many of its younger workers are unemployed.

“U.S. retail sales are charging ahead, and a lot of that may be on charge cards,” said Brian Jacobsen, chief economist at Annex Wealth Management. “Still, the U.S. consumer is showing few signs of slowing down.” “Numbers like today’s just make it more likely that rates will remain higher for longer, even if the Fed doesn’t hike them next month,” said Mike Loewengart, head of model portfolio construction at Morgan Stanley Global Investment Office.

The declines meant stocks of energy producers were among the biggest losers in the S&P 500. Exxon Mobil’s 2.6% drop was one of the heavier weights on the index.

 

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