China data sparks recession angst
Dollar set for strongest monthly gain since Sept
Yuan hits sixmonth low, commodities sluggish

LONDON, May 31 Reuters Global shares fell on Wednesday ahead of a crucial vote in Washington on the U.S. debt ceiling, while commodities and the Chinese yuan came under pressure after data highlighted faltering growth in the worlds secondlargest economy.

The MSCI AllWorld Index of global shares, which is heading for its first monthly decline since February, was down 0.4 in midmorning trade in Europe, largely due to declines across Asian markets.

U.S. stock index futures and fell by 0.30.4.

Data showed China39;s manufacturing activity fell more than expected in May, while services growth which has been one of the few bright spots in its patchy recovery slackened to its slowest pace in four months.

For any investors hoping for a sustained bounce in Chinese growth after the elimination of stringent COVID restrictions late last year, the figures offered more evidence that the economy is losing steam, further dimming the global outlook.

If the market was hoping for China to come to the rescue, I think, on this occasion, they39;re mistaken, CMC Markets strategist Michael Hewson said. COVID has done a lot of structural damage to the Chinese economy.

The yuan dropped to its lowest since last November, when China was under public health restrictions. It was last down 0.5 at 7.124 per dollar, putting in on track for a 2.6 drop this month,…