Stocks Retreat As Weak Growth Concerns Weigh

Federal Reserve boss Jerome Powell is among a number of monetary policymakers due to speak this week, with traders hoping for clues about the bank's plans for interest rates AFP

Major stock markets mostly retreated and the dollar advanced Tuesday as concerns about weak growth offset hopes of an end to global interest-rate hikes.

Oil prices slid on data showing China's exports fell at a faster pace than predicted in October, as the world's second-largest economy is buffeted by faltering global demand and a sluggish domestic recovery.

At the same time, the International Monetary Fund raised its 2023 economic growth forecast for China, citing stronger consumption and recent policy measures announced by Beijing.

But official data showed German industrial output slumped more than expected in September, signalling that Europe's biggest economy was struggling to emerge from a slowdown.

"Last week was all about dawning expectation that interest rates might not stay as high for as long as had been previously expected, and this week it's all about growth -- or the lack of it," noted Danni Hewson, AJ Bell head of financial analysis.

Investors were unable to maintain the momentum seen after US officials hinted that the era of rising borrowing costs was over, while a jump in Treasury yields Monday revived jitters that there could still be one more lift to come.

Speeches by a number of decision-makers this week including Federal Reserve chairman Jerome Powell will be analysed for clues about the outlook, with some officials still reluctant to call an end to the tightening cycle.

Asian equity markets were on the back foot Tuesday, with Hong Kong among the biggest losers after a three-day rally that was worth more than four percent.

Traders this week will be keeping tabs also on a meeting between US Treasury Secretary Janet Yellen and Chinese counterpart He Lifeng in San Francisco, hoping for a further thawing of long-chilled ties between the economic superpowers.

The two-day get-together comes ahead of an expected one-on-one between presidents Joe Biden and Xi Jinping on the sidelines of the APEC summit later this month.

London - FTSE 100: UP 0.1 percent at 7,423.72 points

Frankfurt - DAX: DOWN 0.2 percent at 15,103.59

Paris - CAC 40: DOWN 0.4 percent at 6,983.48

EURO STOXX 50: DOWN 0.3 percent at 4,146.76

Tokyo - Nikkei 225: DOWN 1.3 percent at 32,271.82 (close)

Hong Kong - Hang Seng Index: DOWN 1.7 percent at 17,670.16 (close)

Shanghai - Composite: FLAT at 3,057.27 (close)

New York - Dow: UP 0.1 percent at 34,095.86 (close)

Euro/dollar: DOWN at $1.0682 from $1.0723 on Monday

Pound/dollar: DOWN at $1.2295 from $1.2342

Dollar/yen: UP at 150.31 yen from 150.00 yen

Brent North Sea crude: DOWN 1.9 percent at $83.58 per barrel