By Harry Robertson and Scott Murdoch
LONDON/SYDNEY (Reuters) — Global stocks slid on Tuesday and the dollar jumped as investors assessed the latest weak economic data out of China.
Meanwhile, bank stocks came under pressure after Italy approved a windfall tax on lenders and Moody's (NYSE:MCO) cut the credit rating of several mid-sized U.S. lenders.
MSCI's index of global stocks fell 0.36% after climbing 0.5% on Monday. The MSCI Asia index, which excludes Japan, dropped 1.23%.
Data showed China's imports contracted by 12.4% in July, far more than forecasts for a 5% drop. Exports fell by 14.5%, compared with a fall of 12.5% tipped by economists.
European stock indexes fell sharply, with the pan-European STOXX 600 down 0.6% and Germany's DAX dropping 1.57%. Britain's FTSE 100 was down 0.79%.
«The trade figures are absolutely terrible,» said Timothy Graf, head of macro strategy for EMEA at State Street (NYSE:STT).
Graf said it was a «risk-off day», with «equity futures, led by Asia, heading lower and rates heading lower».
Futures on the U.S. S&P 500 were down 0.82% after the stock index climbed 0.9% on Monday. Nasdaq futures were 0.87% lower.
The dollar picked up against its major trading partners as investors shifted towards safer assets, with the dollar index last 0.57% higher at 102.67.
«I think what also stands out here is (that) the U.S. growth impulse continues to outperform Europe and China,» said Erik Nelson, macro strategist at Wells Fargo (NYSE:WFC).
State Street's Graf said more worrying news out of China's enormous and shaky property sector was also likely weighing on markets.
Country Garden, China's biggest privately owned property developer, said on Tuesday it had not paid two dollar bond coupons due on Aug.
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