European shares fall as weak China data adds to growth concerns

European stocks and U.S. stock futures opened lower this week after unexpectedly weak Chinese economic data fueled fears of a global economic slowdown.

The regional Stoxx 600 share index was down 0.8% in early trade, while London’s FTSE 100 lost 0.7%.

Futures contracts betting on Wall Street’s S&P 500 fell 0.9%, while the tech-heavy Nasdaq 100 lost 1.2%.

Monday’s moves suggest global equities may continue Longest weekly losing streak Soaring inflation since the 2008 financial crisis has prompted the central bank to raise interest rates at a time when investors worry that economic activity will not be enough to withstand tighter monetary policy.

“The market is falling, and it’s not just because of rising interest rates,” said Luca Paolini, chief strategist at Pictet Asset Management.

“The risk of recession [in major economies] Significant,” he added. “The reality is that a large part of the global economy is basically contracting. ”

data Retail sales in China fell 11.1% in April from a year earlier, a result that was worse than economists had expected, as a strict nationwide wave of coronavirus lockdowns reduced demand, it showed on Monday. Industrial production, which analysts had expected to edge up slightly, fell 2.9%.

Meanwhile, Brussels set to cut It raised its growth forecast for the euro zone further and raised its inflation outlook to reflect the expected impact on the EU economy from the energy crisis triggered by Russia’s invasion of Ukraine.

Goldman Sachs senior chairman Lloyd Blankfein told CBS News on Sunday that the risk of a U.S. recession is “very, very high.”largest economy in the world Unexpected contraction In the first quarter of this year, consumer price inflation was near a four-year high.

Earlier this month, the Fed raised its key borrowing costs by 0.5 percentage points, while Chairman Jay Powell said A move of the same scale “should be discussed in the next few meetings”.

European Central Bank President Christine Lagarde transmit signal Last week, the agency prepared to abandon its longstanding policy of keeping euro zone interest rates below zero.

Raising concerns about persistent global inflation, Wheat prices rise The ceiling was reached on Monday after India banned exports due to supply disruptions caused by the war in Ukraine.

In Asia, mainland China’s CSI 300 fell 0.8%, Hong Kong’s Hang Seng gained 0.2% and Tokyo’s Topix was flat.

Brent crude fell 1.2% to $110.2 a barrel.

The yield on the 10-year U.S. Treasury note, which is inversely related to the price of benchmark debt securities, fell 0.04 percent to 2.9 percent as traders pulled out of stocks to buy low-risk assets.

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