Global stocks slipped on Wednesday for the third time in four sessions as more disappointing Chinese economic data and the absence of meaningful stimulus from Beijing continued to weigh on investor sentiment.
“Much of the decline is explained by continuing concerns surrounding the economic slowdown in China, as well as rising tensions with the U.S.,” said Thomas Gehlen, senior market strategist at Kleinwort Hambros. On Tuesday, China reported weaker-than-expected July activity data. The Chinese central bank also unexpectedly lowered its policy rate on Tuesday, after a long run of disappointing figures and the arrival of deflation in July, but investors have so far been underwhelmed by the response.
U.S. futures pointed to a brighter start on Wall Street, with S&P contracts up 0.24% and Nasdaq contracts 0.31% higher. The U.S. dollar index, which measures the currency against six major peers, was down 0.22% at 102.98, ending a run of four straight daily increases.