Global stock markets rose while shares on Wall Street were mixed on Tuesday after US retail sales rose less than expected in June, but consumers boosted or maintained spending elsewhere, raising the odds the Federal Reserve hikes interest rates next week.
Retail sales increased 0.2 percent last month, the US Commerce Department said, but, excluding automobiles, gasoline, building materials and food services, core retail sales increased 0.6 percent in June. Headline data for May also was revised higher to show sales gaining 0.5 percent instead of 0.3 percent as previously reported.
The dollar slid to a 15-month low against a basket of currencies, and Treasury yields also fell even as futures pointed to a 97.3 percent probability that the Fed will hike rates by 25 basis points on July 26, according to CME Group's FedWatch Tool.
The dollar index fell 0.12 percent and the euro rose 0.08 percent to $1.1243, after hitting a fresh 17-month high of $1.1276
The major US stock indices were mixed, with the S&P 500 and Dow Industrials rising and the Nasdaq falling, in a sign investors are shifting investments away from the tech-oriented megacap stocks that have dominated returns this year.
Microsoft Corp, Amazon.com Inc and Apple Inc led the Nasdaq lower.
"The Magnificent Seven that outperformed the first five months of the year will probably consolidate a little bit and underperform," said Thomas Hayes, chairman and managing member of Great Hill Capital LLC in New York.
The Dow and the S&P 500, meanwhile, crept higher after some of the top US lenders, including Morgan Stanley and Bank of America, reported upbeat earnings for the second quarter.
The Dow Jones Industrial Average rose 1.05 percent, the S&P 500 gained 0.37 percent and the Nasdaq Composite dropped 0.13 percent.
In Europe, the pan-regional STOXX 600 index rose 0.61 percent and MSCI's gauge of stocks across the globe gained 0.36 percent.
Asian stocks fell earlier in the session as markets caught up with growth data from Monday showing the post-pandemic bounce in China's economy was over.
Deutsche Bank said it was lowering its forecast for China's economic growth this year, following similar moves on Monday by J.P. Morgan, Morgan Stanley and Citigroup.
"China is super important to Europe," said Fiona Cincotta, senior markets analyst at City Index. "There are a lot of concerns about what weakness in China could mean for Germany and the German economy, and I think we're seeing that being played on in the DAX, which is struggling to push higher."
Besides the Fed, the European Central Bank and the Bank of Japan also hold policy meetings next week.
Expectations that the Fed and the ECB will diverge on rate hikes have caused the dollar to weaken recently.
Euro zone government bond yields were down, with the German 10-year yield hitting its lowest since June 29 at 2.337 percent, down around 1.1 basis points on the day.
The yield on US 10-year notes was down 3.9 bps at 3.7539 percent.
Oil prices were little changed on Tuesday as investors weighed a possible tightening of US crude supplies against weaker-than-expected Chinese economic growth.
US crude rose 1.48 percent to $75.25 per barrel and Brent was at $79.45, up 1.21 percent.
Spot gold added 1.4 percent to $1,982.30 an ounce.
(Edited by : Keshav Singh Chundawat)
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Over 50 onion farmers detained in Nashik ahead of PM Modi's visit
May 16, 2024 11:14 AM
Why Google CEO is cautiously optimistic about the election year
May 16, 2024 9:51 AM
Mark Mobius reveals how markets will react if NDA wins 400+ Lok Sabha seats
May 15, 2024 8:09 PM