In This Article:
* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* U.S. stock futures slide on bearish earnings, economic data
* China talks stimulus, but economic damage already done
* Euro near 4-week high as Lagarde flags July hike
By Wayne Cole and Lawrence White
SYDNEY/LONDON, May 24 (Reuters) - Shares slid worldwide on Tuesday as disappointing company earnings and fears about slowing global economic growth punctured the mini-rally of the last few trading days.
Nasdaq futures lost 2%, with traders blaming an earnings warning from Snap which saw shares in the Snapchat owner tumble 28%, while S&P 500 futures slipped 1.25%.
That followed a 1.2% fall in MSCI's broadest index of Asia-Pacific shares outside Japan, while the benchmark STOXX index of European shares fell 0.92%.
All major sectors fell, with utilities and commodity-linked stocks leading declines, as investors awaited May Purchasing Managers Index data due in the morning session for clues about the slowing economy.
Citi analysts said their analysis showed bearish positioning on U.S. equity futures had started to stabilise, and those holding "short" positions were closing out those bets after making hefty profits.
European stock market positioning remains short but here too the bearish momentum is slowing, they added.
The dollar index, which tracks its performance against a basket of major currencies, meanwhile fell 0.3% to 101.81, a one-month low.
The euro held near one-month highs as odds narrowed on a July rate rise from the ECB.
That saw the euro at $1.0727, having bounced 1.2% overnight in its best session since early March. It now faces stiff chart resistance around $1.0756.
DISAPPOINTING DATA
Markets had taken some comfort from U.S. President Joe Biden's comment on Monday that he was considering easing tariffs on China, and from Beijing's ongoing promises of stimulus.
Unfortunately, China's zero-COVID policy and its lockdowns have already done considerable economic damage.
"Following disappointing April activity data, we have downgraded our China GDP (gross domestic product) forecast again and now look for 2Q GDP to contract 5.4% annualised, previously ‒1.5%," warned analysts at JPMorgan.
"Our 2Q global growth forecast stands at just 0.6% annualised rate, easily the weakest quarter since the global financial crisis outside of 2020."
The early surveys of European and U.S. manufacturing purchasing managers for May could show some slowing in what has been a resilient sector of the global economy.
Japan's manufacturing activity grew at the slowest pace in three months in May amid supply bottlenecks, while Toyota announced a cut in its output plans.