U.S. stocks declined following the 4th of July holiday, as did those in Europe, with markets expressing concern following weak services-industry data from China. The incoming data has fueled further concerns regarding global economic health and the prospect of further central bank rate hikes.
The Stoxx Europe 600 Index declined by around 0.5%, led by mining stocks due to concerns about a decline in minerals demand from China. Retailers were also affected after a composite purchasing managers’ index for the eurozone slumped to its lowest level since December. French supermarket chain Casino Guichard-Perrachon SA led the losses, freefalling by 42%.
Across the Atlantic, futures on the benchmark S&P 500 declined by 0.2%, as did those on the Dow Jones Industrial Average. Contracts on the Nasdaq 100 fell by 0.3%.
Slowing economic growth on a global scale has revived concerns about incoming interest rate increases by the European Central Bank and the Federal Reserve, with both central banks still in monetary tightening mode.