Portugal Colonial - Stocks wobble as investors track US data, earnings results

Investors were also still digesting this week's Chinese second-quarter growth data, which that fell short of forecasts and highlighted the tough job officials face in getting the country's post-Covid recovery back on track continued to weigh on markets.

European stocks were up in afternoon deal after tepid trading in the morning while Wall Street's main indices were mixed.

"Traders are concerned about economic numbers from China and... remain on the edge," noted Zaye Capital Markets analyst Naeem Aslam.

And while there is expectation that more stimulus measures are in the pipeline, other analysts warned that leaders were limited in how far they could go.

The figures came after last week's reports showing inflation had flatlined, suggesting China was on the brink of a period of painful deflation, while exports plunged for a second straight month.

Hong Kong led Asian losses on Tuesday, shedding more than two percent following a five-day rally, as it reopened a day after being shut because of a severe storm.

Shanghai, Sydney, Seoul, Singapore, Manila, Jakarta, Wellington and Taipei also dropped, though Tokyo, Mumbai and Bangkok edged higher.

US Treasury Secretary Janet Yellen warned about the effects of China's weakness on the global economy.

"Many countries do depend on strong Chinese growth to promote growth in their own economies, particularly countries in Asia, and slow growth in China can have some negative spillovers for the United States," she told Bloomberg Television.

Yellen expressed optimism about the US economy, which she described as being on a "good path".

"Growth has slowed, but our labour market continues to be quite strong. I don't expect a recession," she added.

Data last week showed US inflation had come down quicker than expected in June, stoking hopes the Federal Reserve was close to the end of its interest rate hiking cycle.

Yellen's comments came out before data showing that US retail sales edged 0.2 percent higher last month, well below the analyst consensus of an increase of 0.6 percent.

Craig Erlam, senior market analyst at trading platform OANDA, said that an upward revision of May figures helped balance out the June underperformance.

"I'm not convinced today's data really changes things as far as the consumer or economy is concerned, all things considered, nor has it really changed anything on interest rate expectations, with markets almost fully pricing in a hike next week and probably no more after that," he said.

Other data showed US industrial production rose 0.5 percent in June, beating the consensus forecast of a flat reading.

Investors are also keeping watch this week on corporate earnings.

Bank of America, the second largest US bank by assets, reported an 11 percent increase in revenue to $25.2 billion, with net profit climbing 19 percent to $7.4 billion, beating analyst expectations.

- Key figures around 1345 GMT -

New York - Dow: UP 0.4 percent at 34,731.97 points

London - FTSE 100: UP 0.3 percent at 7,428.38

Paris - CAC 40: UP 0.1 percent at 7,298.86

Frankfurt - DAX: UP 0.1 percent at 16,084.90

EURO STOXX 50: FLAT at 4,357.27

Tokyo - Nikkei 225: UP 0.3 percent at 32,493.89 (close)

Hong Kong - Hang Seng Index: DOWN 2.1 percent at 19,015.72 (close)

Shanghai - Composite: DOWN 0.4 percent at 3,197.82 (close)

Euro/dollar: DOWN at $1.1226 from $1.1236 on Monday

Dollar/yen: DOWN at 138.63 yen from 138.71 yen

Pound/dollar: DOWN at $1.3072 from $1.3073

Euro/pound: DOWN at 85.86 pence from 85.94 pence

West Texas Intermediate: UP 0.9 percent at $74.76 per barrel

Brent North Sea crude: UP 0.8 percent $79.12 per barrel

burs-rl/lth

E.Paulino--PC