European Shares Seen Lower As China Data Disappoints

European stocks are seen opening lower on Friday after the release of disappointing Chinese data.

Official data showed that China’s industrial production grew 4.8 percent on a yearly basis in July, the same rate of growth as seen in June and weaker than the expected rise of 5.1 percent.

Retail sales dropped 1.1 percent from last year, confounding expectations for an increase of 0.1 percent.

During January to July period, fixed asset investment decreased 1.6 percent versus a 3.1 percent decrease in January to June.

Eurostat is set to publish euro area flash GDP estimate for the second quarter later in the session. According to preliminary estimate, the currency bloc contracted 12.1 percent.

The euro area foreign trade data is also due. The trade surplus is forecast to rise to EUR 12.6 billion in June from EUR 9.4 billion in May.

Across the Atlantic, trading later in the day may be impacted by reaction to a slew of U.S. economic data on retail sales, industrial production and consumer sentiment.

Asian markets are broadly lower while gold ticked higher on dollar weakness amid worries about a delay in U.S. fiscal stimulus. Oil prices rose and were heading for a second week of gains.

U.S. stocks ended mixed overnight as investors weighed positive jobless claims data against an impasse over a coronavirus relief bill.

The Dow Jones Industrial Average dropped 0.3 percent and the S&P 500 eased 0.2 percent while the tech-heavy Nasdaq Composite edged up 0.3 percent.

European markets broke a four-day winning streak on Thursday as stimulus talks sputtered in Washington and the U.S. said it will hold off a threatened hike in tariffs on $7.5bn (£5.75bn) worth of European and U.K. goods.

The pan-European Stoxx 600 index gave up 0.6 percent. The German DAX shed half a percent,

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S&P 500 again flirts with record high, closing just below

NEW YORK (AP) — The S&P 500 again crossed above its record high but closed just below that level for the second day in a row. The index fell 0.2% Thursday after another day of wobbly, back-and-forth trading. Earlier, it briefly crossed above 3,386.15. That’s the record closing level it set in February, before investors appreciated how much devastation the coronavirus pandemic would cause the global economy. 

Treasury yields were higher following an auction of 30-year bonds and after a report showed that 963,000 U.S. workers filed for unemployment benefits last week. It’s an incredibly high number, but still the lowest tally since March.

The Dow Jones Industrial Average was down 106 points, or 0.4%, at 27,870, as of 2:30 p.m. Eastern time, and the Nasdaq composite was up 0.3%.

Treasury yields were rising following an auction of 30-year bonds and after a report showed that 963,000 U.S. workers filed for unemployment benefits last week. It’s an incredibly high number of layoffs, but it’s also the first time the tally has dropped below 1 million since March, before widespread business lockdowns caused a tsunami of layoffs.

Economists said the drop in jobless claims, which was better than the market was expecting, is an encouraging step. But they also cautioned that it could be more of an outlier than a trend, and more data reports are needed to confirm it.

The yield on the 10-year Treasury was sitting at 0.71% in afternoon trading. It was at 0.57% just on Monday.

Wall Street has erased almost all of the nearly 34% drop the S&P 500 suffered from late February into March, even though the economy is still hobbled despite some recent improvements.

Massive efforts to support the economy by the Federal Reserve and U.S. government helped trigger the rally, and investors

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