Global stocks fall, dollar rallies as weak China data disappoints

Global stocks slid on Tuesday and the dollar jumped as investors assessed the latest weak economic data out of China.

Meanwhile, bank stocks came under pressure after Italy approved a windfall tax on lenders and Moody’s cut the credit rating of several mid-sized U.S. lenders.

MSCI’s index of global stocks (.MIWD00000PUS) fell 0.36% after climbing 0.5% on Monday. The MSCI Asia index, which excludes Japan, (.MIAPJ0000PUS) dropped 1.23%.

Data showed China’s imports contracted by 12.4% in July, far more than forecasts for a 5% drop. Exports fell by 14.5%, compared with a fall of 12.5% tipped by economists.

European stock indexes fell sharply, with the pan-European STOXX 600 (.STOXX) down 0.6% and Germany’s DAX (.GDAXI) dropping 1.57%. Britain’s FTSE 100 (.FTSE) was down 0.79%.

“The trade figures are absolutely terrible,” said Timothy Graf, head of macro strategy for EMEA at State Street.

Graf said it was a “risk-off day”, with “equity futures, led by Asia, heading lower and rates heading lower”.

Futures on the U.S. S&P 500 were down 0.82% after the stock index climbed 0.9% on Monday. Nasdaq futures were 0.87% lower.

This report’s information was first seen on REUTERS; to read more, click this link.