Volkswacht Bodensee - Stock markets drop as China data disappoints

The euro reached $1.1249, the highest level since February 2022 on expectations of an end soon to the Federal Reserve's tightening, while the yen and sterling have also pushed to multi-month highs in recent sessions.

While traders reacted to economic storm clouds -- oil prices also slid Monday -- a typhoon forced the closure of the Hong Kong stock market.

Finance ministers and central bank bosses from the Group of 20 meanwhile began a two-day meeting in India, where they will discuss ways to bolster the stuttering global economy.

Equities last week surged as news that US inflation slowed more than forecast fanned hopes that the Federal Reserve would soon end its campaign of tightening borrowing costs.

The advance was bolstered by pledges from Beijing to introduce stimulus measures for the struggling Chinese economy.

However, "investors have been greeted by a dismal Chinese data dump to start the week", said SPI Asset Management's Stephen Innes.

The scale of the work facing Chinese officials was laid bare with data showing gross domestic product expanded 6.3 percent on-year in April-June, much less than forecast in an AFP survey.

The National Bureau of Statistics added that youth unemployment hit a record 21.3 percent in June and retail sales also missed estimates, adding to months of data highlighting softness in the world's number-two economy behind the United States.

"China's recovery is going from bad to worse," said Harry Murphy Cruise at Moody's Analytics.

"After a sugar injection in the opening months of 2023 (following the lifting of zero-Covid measures), the pandemic hangover is plaguing China's recovery."

The readings will further stoke calls for authorities to announce more measures to fire growth, having cut interest rates last month.

But while officials have pledged to do more, there has been little concrete out of Beijing so far.

Monday's Chinese data "will be viewed through the lens of how it will influence the (upcoming) policy decisions", added Innes.

The figures weighed on oil prices, as well as share prices of companies in the commodity and luxury sectors -- all of which rely heavily on Chinese demand.

- Key figures around 1100 GMT -

London - FTSE 100: DOWN 0.5 percent at 7,400.98 points

Frankfurt - DAX: DOWN 0.6 percent at 16,008.23

Paris - CAC 40: DOWN 1.3 percent at 7,276.80

EURO STOXX 50: DOWN 1.2 percent at 4,348.33

Shanghai - Composite: DOWN 0.9 percent at 3,209.63 (close)

Tokyo - Nikkei 225: Closed for a holiday

Hong Kong - Hang Seng Index: Closed because of storm

New York - Dow: UP 0.3 percent at 34,509.03 (close)

Euro/dollar: UP at $1.1243 from $1.1230 on Friday

Dollar/yen: DOWN at 138.14 yen from 138.82 yen

Pound/dollar: UP at $1.3095 from $1.3091

Euro/pound: UP at 85.86 pence from 85.76 pence

West Texas Intermediate: DOWN 1.6 percent at $74.18 per barrel

Brent North Sea crude: DOWN 1.6 percent at $78.64 per barrel

P.Anderson--BTB