Wednesday, July 5
► European stocks and U.S. equity futures took a downturn following more economic weakness in China, with the Stoxx Europe 600 Index falling by approximately 0.4% and all industry sectors showing declines.
► Pre-market action suggests that U.S. stocks may drop as they reopen after the Independence Day holiday.
► China's service PMI dropped to a 5-month low, raising concerns about China's struggling services industry. This also raises questions about the future of global economic growth as most central banks continue to tighten their policies. This drop also resulted in deepened losses in Chinese equities and reverse an offshore CNY advance, despite the central bank's continued support for the currency.
► Decreased optimism about China's economic outlook leads investors to lower their expectations for Asian equities, predicting now a 5% rise by year's end from Tuesday's closing level.
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