American Marconi Wireless News - Stocks drop as Chinese, eurozone data disappoint

European and Asian equities closed in the red while Wall Street indices were down near midday deals.

Eurozone economic activity fell to 49.9 points in June, just under the 50-point mark indicating zero growth, according to revised figures from the keenly-watched HCOB Eurozone Composite purchasing managers' index.

In China, the Caixin private survey of the services sector showed that activity slowed sharply in June and at a much faster pace than expected in the world's second biggest economy.

That came after an official reading also pointed to weakness in the sector and added to a run of soft data on trade and consumer activity.

Apart from the odd pledge of action and some small interest rate cuts, Chinese authorities have done little to address the problem as the economy has sputtered despite the end of Covid restrictions late last year.

"There are fresh concerns about the global economy powering down as data from China's service sector underlines how tepid the post-pandemic recovery has become, just as trade tensions between Beijing and Washington ramp up," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.

Briefing.com analyst Patrick O'Hare pointed to the poor Chinese data plus indications that both Beijing and Washington are adopting new protectionist measures just as US Treasury Secretary Janet Yellen visits China this week to ease tensions.

"It sounds like she will have her work cut out for her, but in any case, there is an identifiable excuse for market participants to take some money off the table in stocks that have made big runs and it appears that is an aim ahead of today's open," O'Hare wrote shortly before trading began.

President Xi Jinping's government this week added to a tech standoff with the United States by imposing export controls on key metals used in making microchips.

Officials said Monday's measure placed on shipments of gallium and germanium was to protect national security.

Investors will also focus on the release later Wednesday of minutes from the US Federal Reserve's June policy meeting.

They should provide an insight into officials' thinking when they decided to pause interest rates for the first time after 10 straight hikes to combat elevated inflation.

The minutes will be followed Friday by closely-watched US jobs data, a key guide to the state of the world's top economy.

- Key figures around 1540 GMT -

New York - Dow: DOWN 0.2 percent at 34,364.08 points

London - FTSE 100: DOWN 1.0 percent at 7,442.10 (close)

Paris - CAC 40: DOWN 0.8 percent at 7,310.81 (close)

Frankfurt - DAX: DOWN 0.6 percent at 15,937.58 (close)

EURO STOXX 50: DOWN 0.9 percent at 4,350.71 (close)

Tokyo - Nikkei 225: DOWN 0.3 percent at 33,338.70 (close)

Hong Kong - Hang Seng Index: DOWN 1.6 percent at 19,110.38 (close)

Shanghai - Composite: DOWN 0.7 percent at 3,222.95 (close)

Euro/dollar: DOWN at $1.0873 from $1.0900 on Tuesday

Pound/dollar: DOWN at $1.2717 from $1.2726

Dollar/yen: UP at 144.53 yen from 144.44 yen

Euro/pound: DOWN at 85.50 pence from 85.66 pence

Brent North Sea crude: UP 0.5 percent at $76.66 per barrel

West Texas Intermediate: UP 3.1 percent (from Monday) at $71.93 per barrel

burs-lth/bp

Ch.Kahalev--AMWN