“China still plays a really critical role in terms of growth, so any disappointment has implications globally,” said Hani Redha, a multiasset portfolio manager at PineBridge Investments. “It’s contributing to the loss of momentum and growth in Europe as well.”
Coming up: The Fed’s minutes from its June meeting, due at 2 p.m. ET, will be scrutinized for signals on the future path of interest rates. Fed Chair Jerome Powell has said that another rate increase is likely in July.
U.S. markets were closed Tuesday for the July Fourth holiday.
U.S. stocks fell at the open. The S&P 500 and Dow Jones Industrial Average dropped modestly. The Nasdaq Composite was about flat.
AstraZeneca and Moderna rose. AstraZeneca bounced back after mixed results from a cancer drug trial sparked a selloff Monday. Moderna advanced after reports it signed a deal to work towards drug production in China.
Chinese stocks retreated. Hong Kong’s Hang Seng Index lost 1.6% and the Shanghai Composite Index fell 0.7%, snapping a three-day winning streak.
Other global indexes declined. The Stoxx Europe 600 was off 0.6%. Japan’s Nikkei 225 edged down 0.3%.
Commodity prices weakened. Copper, which is heavily affected by Chinese demand, fell 1.3%.
Treasury bonds were broadly stable. The yield on the benchmark 10-year Treasury note inched up to 3.870%, having closed at 3.856% Monday.
