Stocks struggle as China rate cut sends oil tumbling



* Asian stock markets : Link

* Nikkei edges up, S&P 500 futures dip

* PBOC cuts key rates, China data badly miss forecasts

* Eyes on Fed minutes, earnings

By Huw Jones

LONDON, Aug 15 (Reuters) - Global shares struggled to advance on Monday while investors digested news of an unexpected cut in Chinese interest rates as data pointed to faltering growth in the world's second largest economy, sending oil prices nearly 2% lower.

Weaker U.S. stock index futures also weighed on sentiment, while a steadier dollar knocked gold.

The MSCI all country index .MIWD00000PUS was barely firmer, a month-long advance having whittled away the benchmark's decline for the year to about 13%.

China's central bank cut key lending rates to revive demand as data showed the economy unexpectedly slowing in July, with factory and retail activity squeezed by Beijing's zero-COVID policy and a property crisis.

Until now, investors have been grappling with how much further central banks in the United States and Europe would hike rates when they meet next month.

Hopes of smaller rate hikes on signs that U.S. inflation may be peaking helped Wall Street clock up its fourth straight week of gains by Friday.

The gains on Wall Street and steady growth figures for Japan helped the Nikkei .N225 share average in Tokyo jump to its highest in more than seven months.

"China, I think, is a different situation than the rest of the world. They've got a self imposed recession that they've created from the zero COVID policy," said Patrick Armstrong, chief investment officer at investment house Plurimi Group.

"I do think it's going to be Fed driven if there is another leg down in markets. Quantitative tightening, I think, will begin in earnest in September and that's going to withdraw liquidity from the market," Armstrong said.

Markets are still implying around a 50% chance the Fed will hike by 75 basis points in September and that rates will rise to around 3.50-3.75% by the end of the year. FEDWATCH

The Fed will publish minutes on Wednesday from its last rate-setting meeting, but investor hopes of them showing the central bank beginning to pivot on rate hikes could be dashed.

"I don't think (Fed Chair) Powell is going to say that, I don't think the minutes are going to indicate that," Armstrong said.

In Europe, the STOXX share index of 600 leading companies was up 0.13% at 441.43 points, still down around 10% for the year.

U.S. FUTURES EASE

S&P 500 futures ESc1 and Nasdaq futures NQc1 were both down around 0.5% after last week's gains.

Earnings from major retailers, including Walmart WMT.N and Target TGT.N , will be scrutinised for signs of flagging consumer demand.

The cut in Chinese interest rates failed to stop Chinese blue chips .CSI300 easing 0.13%, while the yuan and bond yields also slipped.

Geopolitical risks remain high with a delegation of U.S. lawmakers in Taiwan for a two-day trip.

The bond market still seems to doubt the Fed can manufacture a soft landing, with the yield curve remaining deeply inverted. Two-year yields US2YT=RR at 3.27% are well above those for 10-year notes US10YT=RR which were trading at 2.86%.

Those yields have underpinned the U.S. dollar, though it did slip 0.8% against a basket of currencies =USD last week as risk sentiment improved.

But on Monday the dollar regained some poise, with the euro down 0.2% against the greenback at $1.02345 EUR=EBS after bouncing 0.8% last week. Against the yen, the dollar steadied at 133.51 JPY=EBS after losing 1% last week.

"Our sense remains that the dollar rally will resume before too long," argued Jonas Goltermann, a senior economist at Capital Economics.

Gold XAU= was down 0.8% at $1,786, losing nearly all of its 1% gains last week.

Oil prices eased as China's disappointing data added to worries about global demand for fuel.

The head of the world's top exporter, Saudi Aramco, said it was ready to ramp up output while production at several offshore U.S. Gulf of Mexico platforms is resuming after a brief outage last week.

Brent LCOc1 slipped 1.8% to $96.35, while U.S. crude CLc1 fell 1.9% to $90.34 per barrel.



Asia stock markets Link
Asia-Pacific valuations Link
Fed Rate Futures and Stocks Link



Reporting by Wayne Cole; Editing by Sam Holmes, Raju
Gopalakrishnan and Ed Osmond




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Morning News Call - India, September 26

إخلاء المسؤولية: تتيح كيانات XM Group خدمة تنفيذية فقط والدخول إلى منصة تداولنا عبر الإنترنت، مما يسمح للشخص بمشاهدة و/أو استخدام المحتوى المتاح على موقع الويب أو عن طريقه، وهذا المحتوى لا يراد به التغيير أو التوسع عن ذلك. يخضع هذا الدخول والاستخدام دائماً لما يلي: (1) الشروط والأحكام؛ (2) تحذيرات المخاطر؛ (3) إخلاء المسؤولية الكامل. لذلك يُقدم هذا المحتوى على أنه ليس أكثر من معلومات عامة. تحديداً، يرجى الانتباه إلى أن المحتوى المتاح على منصة تداولنا عبر الإنترنت ليس طلباً أو عرضاً لدخول أي معاملات في الأسواق المالية. التداول في أي سوق مالي به مخاطرة عالية برأس مالك.

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