Global stocks tumble as investors weigh Chinese GDP data, which beats estimates but 'flatters to deceive'

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Global stocks plummeted on Thursday as China released mixed data that showed some growth, but its retail sales failed to climb into positive territory.
China's benchmark Shanghai composite index fell 4.5%, while Hong Kong's Hang Seng index dropped 2.1%.
European markets fell ahead of a European Central Bank meeting where leaders are expected to hold fire on any further stimulus measures.
US markets reversed the previous day's losses and fell between 0.6% and 1%.
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Global stocks tumbled on Thursday after the latest economic data out of China showed a return to growth by posting better-than-expected metrics, aside from its retail sales.

China's mainland benchmark index, the Shanghai Composite fell 4.5%, and Hong Kong's Hang Seng fell 2.1%.

Gross domestic product for the world's second-largest economy rose 3.2% in the three months ending June, above estimates, but its retail sales fell short of forecasts by dropping 1.8% in June.

China's "surprise" jump in GDP was well above market expectations of 2.5% growth, said Jeffrey Halley, a senior market analyst at OANDA.

But "the headline number flatters to deceive," he said, while pointing out that "the Chinese domestic consumer appears to be more reluctant than anticipated to go outside and consume."

China's exports dropped 3% compared to a year earlier, in a sign that its trade situation might be one of its "crucial challenges."

"The question being, is China ramping up production of export-related goods that end up stored on the docks awaiting a new overseas home?" Halley said.

China's stock falls continued in Europe, with the pan-European Stoxx 50 falling 0.9% ahead of a European Central Bank meeting at which leaders are likely to hold off on any new monetary stimulus.

Investors are expected to watch for the European Union's summit on Friday for signs that a recovery fund which propelled southern European debt may soon be approved, Reuters said.

Futures tied to the S&P 500 partially reversed the previous day's gains by dropping 0.6% despite hopes of a coronavirus vaccine by Moderna and strong earnings delivered by Goldman Sachs.

Here's the market roundup as of 10 a.m. in London (5 a.m. ET):

Asian indexes were down with China's Shanghai Composite down 4.5%, Hong Kong's Hang Seng down 2.1%, and Japan's Nikkei down 0.7%.
European equities were down, with Germany's DAX down 0.9%, Britain's FTSE 100 down 0.8%, and the Euro Stoxx 50 down 0.9%.
US stocks are set to open lower. Futures underlying the Dow Jones Industrial Average, the S&P 500, and the Nasdaq fell between 0.6% and 1%.
Oil prices fell, with West Texas Intermediate down 1.4% at $40.64, and Brent crude down 1% at $43.44.
The benchmark 10-year Treasury yield fell to 0.61%.
Gold fell 0.4% to $1,806 per ounce.