Premarket: Global stocks dip on concerns over Fed rate plans, disappointing China retail data

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European PMIs weak again

Shares around the world nudged lower on Monday on soft economic numbers from China and Europe and as surging bond yields challenged equity valuations, at the start of a week packed with central bank meetings and major economic data.

European stocks also nudged down, off 0.1%, not helped by soft business activity data from Germany, which showed a sixth straight month of contraction, and France. That left MSCI’s world share index a fraction lower. U.S. share futures held steady.The action came a few hours after French President Emmanuel Macron appointed veteran centrist Francois Bayrou as the country’s fourth prime minister in a year.

More important will be any guidance on future easing, including the “dot plot” forecasts of Fed members for rates over the next couple of years. Investors have been steadily scaling back expectations of how far rates may fall, in part reflecting solid economic news and speculation President-elect Donald Trump’s plans for tax cuts and tariffs would expand government borrowing while putting upward pressure on inflation.

Bitcoin was also in the spotlight, surging to a record high above $106,000 as it extended gains on bets Trump’s return will usher in a cryptocurrency-friendly regulatory environment.

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