Portugal Colonial - Global stocks down on weak Chinese data

Wall Street opened down and European markets were trading firmly in the red following losses in Asia.

Asian stocks ended mixed as a US tech rally initially buoyed investor sentiment, with Tokyo up but Hong Kong shedding 1.0 percent and Shanghai losing 0.1 percent.

"Risk off is the key theme in the markets right now and we are seeing stock averages continue to struggle," said City Index analyst Fawad Razaqzada.

Chinese data released on Tuesday showed slowing growth in July retail sales, while industrial production fell short of analyst expectations and unemployment crept up.

Worries have grown over the heavily indebted property sector and the future of massive developer Country Garden, which has warned of huge losses.

The central bank also cut a key interest rate in a bid to boost growth, in a sign the country's post-Covid rebound is stuttering.

The measure "is unlikely to have much lasting benefit in the absence of government spending", noted Stephen Innes of SPI Asset Management.

It "could even be perceived as unfavourable in the sense that policymakers are starting to hit the panic button".

Beijing also said it would stop reporting the youth unemployment rate, which hit a record 21.3 percent in June, prompting concerns over transparency.

"The lack of transparency continues to irk investors," added Innes, noting that "growing concerns about Chinese property and the prospect of higher US rates have dampened risk appetite".

Oil prices sank again on Tuesday over fears on weakened demand from China, the world's top crude importer.

The drop in copper and oil prices "reinforces the view that China is struggling, where private sector demand remains rather weak", said Razaqzada.

On foreign exchange markets, the ruble was trading around 98 to the dollar after Russia hiked its key interest rate to 12 percent following an emergency central bank meeting to stem a slide in the currency.

On Monday, the ruble crashed past 100 to the dollar, its lowest level since March 2022 -- following Russia's invasion of Ukraine and the imposition of Western sanctions.

Elsewhere, the dollar was holding steady above 145 yen, its strongest level against the Japanese currency since November.

Investors were also waiting for the release of US retail sales and manufacturing data and its potential impact on the Federal Reserve's interest rate policy.

An improvement is poised to "give a further boost to both the US dollar and the US stocks", said Swissquote analyst Ipek Ozkardeskaya.

- Key figures around 1330 GMT -

New York - Dow: DOWN 0.5 percent at 35,116.34 points

London - FTSE 100: DOWN 1.2 percent at 7,416.66

Frankfurt - DAX: DOWN 0.7 percent at 15,788.10

Paris - CAC 40: DOWN 0.9 percent at 7,281.87

EURO STOXX 50: DOWN 0.8 percent at 4,295.66

Hong Kong - Hang Seng Index: DOWN 1.0 percent at 18,581.11 (close)

Shanghai - Composite: DOWN 0.1 percent at 3,176.18 (close)

Tokyo - Nikkei 225: UP 0.6 percent at 32,238.89 (close)

Euro/dollar: UP at $1.0937 from $1.0908 on Monday

Pound/dollar: UP at $1.2715 from $1.2686

Euro/pound: UP at 85.99 pence from 85.97 pence

Dollar/yen: UP at 145.53 yen from 145.50 yen

West Texas Intermediate: DOWN 1.0 percent at $81.68 per barrel

Brent North Sea crude: DOWN 0.7 percent at $85.57 per barrel

O.Salvador--PC