Chinese economy slowed sharply in Q2
U.S. yields, dollar pull back after Fed officials39; comments
European markets firmer, with eyes on Italy political crisis

LONDON, July 15 Reuters European stocks rose on Friday and Wall Street was tipped for a firmer open as risks appeared to ease of an immediate political crisis in Italy and two Fed policymakers hosed down expectations of a more aggressive U.S. interest rate rise this month.

Markets are still roiled by concerns that the world economy is headed for recession as central banks rush to get on top of galloping inflation, with steep interest rate rises seen this week in Canada, New Zealand, Chile, South Korea and the Philippines.

Fears ofan economic downturn were fanned further on Friday by Chinese data showing annualised 0.4 growth in the second quarter, the worst since at least 1992, excluding early 2020 when the COVID pandemic erupted.

The data reflect the colossal hit from widespread COVID lockdowns. It sent Chinese shares 1.7 lower and dragged an Asian exJapan index to twoyear lows.

But investors elsewhere looked on the bright side.

Today39;s price action… would come down to Fed governors potentially ruling out 100 basis points, so some cooling off of the panic price action we had seen earlier in the week, said Rohan Khanna, a strategist at UBS.

He referred to Thursday39;s comments by Federal Reserve Governor Christopher Waller and St. Louis Fed President James Bullard.

Considered policy hawks, both…