Global stocks are dropping after Chinese factory prices fall, stoking fears deflation is spreading

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Chinese factories face weaker demand and may be 'exporting deflation by cutting prices and making it even harder for central banks' like the ECB.

World stocks slid on Tuesday as traders reacted to falling prices of Chinese manufactured goods and disappointing French industrial production data. China's producer price index dropped 0.8% in August, the sharpest decline in three years, as the country's trade war with the US weighed on demand for factory products. French industrial production rose 0.3% in July, falling short of the 0.5% rise that analysts expected. View Markets Insider's homepage for more stories.

World stocks slid on Tuesday as traders reacted to falling prices of Chinese manufactured goods and disappointing French industrial production data. China's producer price index dropped 0.8% in August, the sharpest decline in three years, as the country's trade war with the US weighed on demand for factory products. French industrial production rose 0.3% in July, falling short of the 0.5% rise that analysts expected. View Markets Insider's homepage for more stories.

 

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