# Stocks, U.S. dollar gain despite surprise weak China data Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-08-15 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Global Equities and U.S. Dollar Rise Despite China Rate Cut Meta Description: Despite China's key interest rate cut and concerns of global recession, markets show resilience with slight gains in equities and dollar strength. URL: https://financedigest.com/stocks-u-s-dollar-gain-despite-surprise-weak-china-datahtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-08-15t163048z1lynxmpei7e0ncrtroptp4global-markets-1736815469305-compressed.jpg) By Chibuike Oguh New York (Reuters) – Global equities and the U.S. [dollar advanced on Monday despite weaker-than-expected economic data](https://www.financedigest.com/dollar-dips-ahead-of-inflation-data-later-this-week.html "Dollar dips ahead of inflation data later this week") in China that prompted the country’s central bank to cut its lending rate, stoking concerns of a global recession. The People’s Bank of China unexpectedly cut key interest rates on Monday after the [world’s second-largest economy](https://www.financedigest.com/at-chinas-largest-trade-fair-exporters-worry-about-world-economy.html "At China’s largest trade fair, exporters worry about world economy") reported July data on industrial output and retail sales that missed most analyst estimates. China’s strict COVID-19 restrictions have hobbled activity at its main manufacturing hubs and popular tourist spots, including Shanghai, even as a deepening downturn continues in the [property market](https://www.financedigest.com/2017-spanish-property-market-gems-kyero-com-gazes-into-the-crystal-ball.html "2017 Spanish property market gems – Kyero.com gazes into the crystal ball"). After earlier session losses, markets were [trading slightly higher](https://www.financedigest.com/global-stocks-trade-higher-at-the-end-of-a-volatile-month.html "Global stocks trade higher at the end of a volatile month"). The MSCI [world equity index](https://www.financedigest.com/world-bank-scrapping-ease-of-doing-business-index-is-a-reminder-to-focus-on-fundamentals.html "World Bank scrapping Ease of Doing Business Index is a reminder to focus on fundamentals"), which tracks shares in 50 countries, was up 0.05%. Overnight in Asia, MSCI’s broadest index of Asia-Pacific [shares outside Japan closed 0.34% lower](https://www.financedigest.com/ford-posts-lower-profit-issues-downbeat-outlook-shares-drop.html "Ford posts lower profit, issues downbeat outlook; shares drop"). You’ve been seeing a [slowing trend in China](https://www.financedigest.com/swiss-gold-exports-to-china-slow-but-shipments-to-turkey-surge.html "Swiss gold exports to China slow but shipments to Turkey surge") amplified by the lockdowns,” said Tom Plumb, portfolio manager at Plumb Balanced Fund in Wisconsin. The credit problems they’ve had especially with [real estate](https://www.financedigest.com/gold-london-real-estate-and-the-theresa-may-effect.html "GOLD, LONDON REAL ESTATE AND THE THERESA MAY EFFECT") developers, that’s going to tie their hands for how aggressive they can go back to stimulation. But I think it’s a sign they’re going to try to be more accommodative.” The U.S. [dollar strengthened following news of the Chinese central bank action amid](https://www.financedigest.com/dollar-outshines-euro-sterling-amid-european-bank-jitters.html "Dollar outshines euro, sterling amid European bank jitters") disappointing data. The dollar index, which measures the greenback against six peers, rose 0.492%, with the euro down 0.64% to $1.0192. [Oil prices dropped by more than 4% on demand concerns](https://www.financedigest.com/oil-near-flat-as-us-crude-stock-draw-contends-with-economic-concerns.html "Oil near flat as US crude stock draw contends with economic concerns") after the weak data from China, one of the largest importers of crude. Brent crude futures fell 4.33% to $93.90, while U.S. West Texas Intermediate crude was down 4.38% at $88.06 per barrel. On [Wall Street](https://www.financedigest.com/wall-street-stocks-power-higher-as-treasury-yields-and-dollar-ease.html "Wall Street stocks power higher as Treasury yields and dollar ease"), major indexes climbed, reversing earlier session losses, following four straight weeks of gains and a likely moderation on U.S. Federal Reserve interest [rate hikes](https://www.financedigest.com/dollar-firms-after-u-s-labor-data-suggests-more-rate-hikes.html "Dollar firms after U.S. labor data suggests more rate hikes") after a slowdown in inflation. The Dow Jones Industrial Average fell 0.1% to 33,727.66, the benchmark S&P 500 lost 0.25% to 4,269.44 and the Nasdaq Composite dropped 0.17% to 13,024.76. U.S. Treasury yields were slightly lower as the market [continued to assess to what extent](https://www.financedigest.com/to-what-extent-is-amls-continuing-globalisation-enough.html "TO WHAT EXTENT IS AML’S CONTINUING GLOBALISATION ENOUGH?") a slowdown in inflation could impact the U.S. Federal Reserve’s [monetary tightening policies](https://www.financedigest.com/asian-economic-powers-warn-of-risks-from-war-monetary-policy-normalisation.html "Asian economic powers warn of risks from war, monetary policy normalisation"). Benchmark 10-year [Treasury yields](https://www.financedigest.com/stocks-fall-treasury-yields-rise-upon-final-2022-trading-day.html "Stocks fall, Treasury yields rise upon final 2022 trading day") were down to 2.777% from a 2.849% close last week. Two-year note yields fell to 3.1946% from 3.257%. [Gold fell over 1% to its lowest in a week on Monday amid sharp declines across precious metals due to a stronger dollar](https://www.financedigest.com/stocks-and-gold-cheer-u-s-inflation-picture-while-dollar-slides.html "Stocks and gold cheer U.S. inflation picture, while dollar slides"), with concerns over further rate hikes by the U.S. Federal Reserve adding to pressure on bullion. Spot gold dropped 1.2% to $1,779.99 an ounce, while U.S. gold futures fell 1.33% to $1,774.70 an ounce. (Reporting by Chibuike Oguh in New York; Editing by Deepa Babington and Bernadette Baum) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---