Stocks languish as weak Chinese data, Greece darken outlook
TOKYO - Global stocks fell on Tuesday as weak Chinese economic data added to the gloom over Wall Street's losses and deadlocked Greek bailout negotiations.
Germany's DAX fell 1.4 percent to 10,911.28 and France's CAC 40 lost 0.7 percent to 4,826.29. Britain's FTSE 100 lost 0.3 percent to 6,767.54. Wall Street looked ready for more losses on the open, with both Dow and S&P 500 futures edging down slightly.
China's inflation benchmark slipped to 1.2 percent in May from 1.5 percent the month before, signaling weak demand and continued deflationary pressures. That followed Monday's report that both imports and exports contracted again in May. The string of lackluster data is adding to pressures for further stimulus to prevent the slowdown becoming a sharp slump.
Talks between Greece and its creditors have been deadlocked since Greek Prime Minister Alexis Tsipras rejected a proposal last week made by the three institutions overseeing the country's bailout. An agreement is needed by June 30, when Greece's emergency financing program ends. Greece said Tuesday it has made new proposals in an attempt to break the stalemate.
"If central banks are waiting for the smaller pieces of the economic jigsaw to fall into place, then investors are likely to sit on their hands for now as well, waiting for news of central bank action or economic growth that encourages earnings estimate increases," Chris Weston, chief market strategist at IG, said in a commentary.
General Electric Co. (GE) says it is selling its U.S. Sponsor Finance business in a deal valued at about $12 billion as it refocuses on its core businesses and exits a banking sector with stricter rules and oversight. In London, HSBC Holdings, Europe's largest bank by market value, said it was slashing up to 25,000 jobs as it shifts its focus more toward Asia, where it has large and growing operations. Its share price was down 1.1 percent.
Japan's Nikkei 225 sagged 1.8 percent to 20,096.30 and Hong Kong's Hang Seng fell 1.1 percent to 27,028.69. The Shanghai Composite shed 0.4 percent to 5,113.53 and South Korea's Kospi edged 0.1 percent lower to 2,064.03. Australia's S&P/ASX 200 slipped 0.5 percent to 5,471.30. Shares in Southeast Asia and Taiwan also were lower.
Benchmark U.S. crude gained $1.25 to $59.39 a barrel in electronic trading on the New York Mercantile Exchange. It fell 99 cents Monday to close at $58.14 a barrel in New York after import data suggested a slowdown in Chinese trade, which could lead to weaker global demand for diesel, gasoline and other fuels.
The U.S. dollar fell to 124.10 yen from 124.62 yen on Monday. The euro slipped to $1.1265 from $1.1278.