U.S. dollar gains, futures slip as China clouds outlook

U.S. equity-index futures slipped, the dollar gained and commodities from oil to iron ore tumbled as disappointing data from China further clouded the outlook for the global economy.

Contracts on both the S&P 500 and Nasdaq 100 were lower, suggesting a four-week stocks rally may stall. Europe’s equity benchmark advanced about 0.3 per cent, as corporate news buoyed healthcare stocks while miners and carmakers declined. An Asian share index added less than 0.1 per cent and emerging-market stocks dropped.

Treasury yields were little changed and the bond curve remained deeply inverted, pointing to worries that the Federal Reserve’s campaign of monetary tightening against high inflation will spark a US recession. Bonds in Europe gained. 

Data showed China’s July retail sales, investment and industrial output missed economists’ estimates. The central bank had earlier cut borrowing costs. China’s bond yields and the offshore yuan fell, while its bourses wavered.