European stocks drop on weak economic data from China & Germany

President Donald Trump said he delayed the tariffs to spare the Christmas shopping season after his representatives had a “productive” call with China.

Aug 14, 2019 10:08 IST India Infoline News Service

Stocks in Europe declined along with U.S. index futures as investors weighed weak data from two of the world’s biggest economies against the apparent de-escalation in America’s trade war with China.

Treasuries gained along with European bonds.

Carmakers and banks led the retreat in the Stoxx Europe 600 index, while futures on the S&P 500 fell after the underlying index gained the most in more than two months yesterday.

Benchmarks gained across Asia earlier. Washington said it was delaying until mid-December the 10% tariff on some Chinese-made products that are high on many holiday-shopping lists such as phones, laptops and toys.

Later, China said it was sticking to September trade talks with the U.S., signaling that talks remain on track for now.

The offshore yuan slipped and the yen clawed back some of Tuesday’s loss as Chinese retail sales and industrial output data missed estimates.

The euro fluctuated as data showed Germany’s economy contracted in the second quarter and the euro-zone economy expanded in line with expectations. The pound was steady after U.K. inflation exceeded estimates in July. The dollar was little changed.

President Donald Trump said he delayed the tariffs to spare the Christmas shopping season after his representatives had a “productive” call with China. That eased investor concern over souring trade tensions and renewed some appetite for riskier assets on Tuesday. The upbeat mood waned, however, as the data from China and Germany added to the gloomy outlook for global economic growth.

Meanwhile, Hong Kong’s airport resumed normal operations after a chaotic night of protest in which demonstrators beat and detained two suspected infiltrators and Trump warned of Chinese troops massing on the border.

Elsewhere, oil declined after jumping the most since early January. Gold traded near $1,500/ounce after falling a day earlier.

Source: Bloomberg

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