US stock futures slip and oil prices drop after data shows China's economy is slowing sharply

• US stock futures slipped and oil prices slid Monday after data showed China's economy is slowing sharply.

• China's central bank unexpectedly cut interest rates in a sign that growth is faring worse than policymakers expected.

• US bond yields and the dollar index rose as investors moved toward assets seen as safe havens.

US stock futures and oil prices fell Monday after a raft of data showed China's economy is slowing more quickly than expected and its central bank unexpectedly cut key interest rates.

S&P 500 futures were down around 0.5% in European trading, while futures on the Nasdaq 100 and Dow futures were also in the red.

Brent crude futures, the global benchmark oil price, shed more than 4% as investors bet China's slowdown would reduce the demand for energy.

Growth in output at China's factories slowed to 3.8% year-on-year in July, data showed overnight, down from 3.9% in June and well below economists' expectations for a 4.6% reading. Retail sales growth also slowed, while youth unemployment ticked up to a record high of just under 20%.

China's enormous economy is creaking under the weight of a crisis in the over-indebted property sector and President Xi Jinping's strict zero-COVID policy.

The country's central bank cut 1-year and 7-day lending rates in a surprise move Monday that ING analyst Iris Pang said "indicates the re-emergence of China's downward economic cycle."

Pang said ING, a Dutch bank, now expects the Chinese economy to grow just 4% this year, well below the government's official target of 5.5% and the growth rates seen over the past two decades.

China's CSI 300 stock index fell slightly overnight. Europe's continent-wide Stoxx 600 stock index ticked higher despite China's slowdown.

US bond yields, which move inversely to prices, slipped, while the dollar index rose as investors bought safe-haven assets.

Investors awaited more earnings this week, including from Walmart and Target. Minutes of the Federal Reserve's meeting in July are due for release Wednesday, along with US retail sales data that should give insight into consumers and the economy.

• S&P 500 futures were down 0.53% at 6.45 a.m. ET. Nasdaq 100 futures were 0.37% lower, while Dow futures lost 0.51%.

• Brent crude oil prices dropped 4.54% to $93.68 a barrel, while WTI crude fell 4.46% to $87.98.

• China's CSI 300 slipped 0.13% overnight, and Tokyo's Nikkei 225 closed 1.14% higher.

• Europe's continent-wide Stoxx 600 index was up 0.23%.

• The dollar index rose 0.6% to 106.29.

• The yield on the key 10-year US Treasury note fell by around a basis point to 2.832%.

• Bitcoin was down 0.5% over 24 hours to $24,194, according to Coindesk data, after briefly breaking above $25,000 at the weekend.

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