Despite generally favorable July economic data out of China and a rally in Asia overnight, stock markets in Europe and the U.S. are sliding.
Right now, the French CAC 40 and the German DAX are down 0.2%, the Spanish IBEX 35 is off 0.1%, and the Italian FTSE MIB is 0.4% lower. Meanwhile, the London FTSE is up 0.2%.
In the United States, S&P 500 futures are lower by 0.4%.
In Asia, the Japanese Nikkei 225 closed up 0.1%, the Hong Kong Hang Seng advanced 0.7%, and the Shanghai Composite rose 0.4%.
" A re-acceleration in Chinese industrial production growth to 9.7% [year over year] (thanks to steel and auto production increases), has helped boost positive risk sentiment into the weekend," says Société Générale global strategist Kit Juckes. "[Emerging markets] currencies are stronger across the board, the [Aussie dollar] short-covering rally is continuing and only the yen’s strength is inconsistent with this overall picture. That’s testament to the pressure for positions to be squared and probably tells us not to take any of the current price action too seriously."
French industrial production unexpectedly plunged in June – down 1.4% following a 0.3% decline in May. Economists had forecast a gain of 0.3%.
"I n the details, the contraction in industrial activity in June was mainly driven by a slump in output of utilities (-5.4%)," says Morgan Stanley economist Olivier Bizimana. " Production declined in almost all the main branches of the manufacturing industry as well (-0.4%). In particular, output in the manufacture of food products and beverages showed the largest decline (-2.9%)."
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