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.
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.
“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.