Global Shares Slip On Chinese Economy, Afghanistan Turmoil

China’s factory output and retail sales growth slowed sharply and missed expectations in July, as new COVID-19 outbreaks and floods disrupted business operations

A surprisingly sharp slowdown in Chinese economic activity and a rapid Taliban takeover in Afghanistan helped drive global shares lower on Monday.

All three major US indices opened Monday sharply lower, after posting fresh record highs last week. The Dow Jones Industrial Average fell 134.63 points, or 0.38%, in early trading, while the S&P 500 lost 0.30% and the Nasdaq Composite dropped 0.32%.

China’s factory output and retail sales growth slowed sharply and missed expectations in July, as new COVID-19 outbreaks and floods disrupted business operations, adding to signs the economic recovery is losing momentum.

Industrial production in the world’s second-largest economy increased 6.4% year-on-year in July, data from the National Bureau of Statistics (NBS) showed on Monday.

Retail sales increased 8.5% in July from a year ago, far lower than the forecast 11.5% rise and June’s 12.1% uptick.

Asian share markets slipped on Monday after the data showed a surprisingly sharp slowdown in the engine of global growth.

The disappointing data out of China also ended a 10-day run of gains for European stocks, with commodity-linked stocks - which are sensitive to demand from China - falling the most. The pan-European STOXX 600 index was down 0.5% past midday in London, easing from record levels last week. The MSCI world equity index, which tracks shares in 45 nations, was down 0.57%.