On Tuesday, figures showed Chinese imports dropped 12.4% in July year-on-year, while exports contracted 14.5%.
“It’s been probably three or four months since we’ve started to realise actually China’s reopening is not this panacea for global growth that we might have hoped for,” says Timothy Graf, head of macro strategy for EMEA at State Street.
Italy’s decision to water down the bank tax which shook markets on Tuesday has helped restore some confidence, particularly in Europe.
The dollar index was giving back some of its recent gains, as investors moved out of safe-haven assets. Bond yields were little changed.
As of Wednesday, however, the greenback was on track for its fourth straight weekly increase – hardly a bullish sign for global markets.
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