* European shares fall as weak China data weighs on markets
* Prospect of ECB easing also impact euro's outlook
By Sudip Kar-Gupta
LONDON, March 8 (Reuters) - Global stock markets fell on
Tuesday after another batch of weak data from China reinforced
persistent concerns about a possible slowdown in the global
economy.
China's February trade performance was far worse than
economists expected, with exports tumbling the most in over six
years, days after top leaders sought to reassure investors about
the outlook for the world's second-largest economy.
The pan-European FTSEurofirst 300 index .FTEU3 fell 1.2
percent while the MSCI All-Country World index .MIWD00000PUS
weakened 0.4 percent.
The safe-haven Japanese yen rose while the low-yielding euro
gained against the dollar on Tuesday as the downbeat Chinese
trade data fuelled concerns about the state of global demand,
weighing on appetite for riskier assets and currencies. FRX/
"At the moment we're in a bear stock market. Everyone's
looking for an excuse to sell out, and the reason today for a
lot of investors is the weak China data," said Andreas Clenow,
hedge fund principal and trader at ACIES Asset Management.
The soft Chinese data also impacted oil and metals prices.
Oil prices also eased back after Kuwait said it would only agree
to an output freeze if all major producers took part. O/R
The MSCI Emerging Market index .MSCIEF fell 0.7 percent
while U.S. stock index futures SPc1 ESC1 also shed around 1
percent. .N
The euro's outlook rests largely on expectations the
European Central Bank will announce more monetary stimulus
measures on Thursday to boost ultra-low inflation and sluggish
growth in the euro zone.
A small 10 basis point cut to push its deposit rate deeper
into negative territory is a foregone conclusion while some type
of adjustment of the bank's 1.5 trillion euro asset purchase
programme is also near certain.
Nevertheless, investors expressed uncertainty over the
extent of the ECB's likely new measures on Thursday.
"We think the central bank will once again struggle to beat
high expectations, with the euro not likely to suffer
significantly after the announcement," BNP Paribas (PA:BNPP) analysts
wrote in a note to clients.