Global stocks drift lower ahead of run of US economic data

LONDON (AP) — Global stock markets drifted lower Wednesday as traders awaited a run of key U.S. economic data and an expected interest rate cut from the Bank of England.

A survey indicates that the British economy is heading for a possible recession in the wake of the country's decision to leave the European Union, whereas the neighboring 19-country eurozone appears to have brushed aside any of the negative fallout from so-called Brexit.

Financial information company IHS Markit said its composite purchasing managers index — a broad gauge of activity across the manufacturing and services sector — rose in July for the eurozone to a six-month high of 53.2 points from 53.1 the previous month.

ANALYST TAKE: "A failure to provide appropriate stimulus measures tomorrow could rock the markets and cause some large moves," said David Cheetham, market analyst at XTB.

Disappointment is already setting in over how the substance of Japan's 28 trillion yen ($272 billion) economic stimulus package falls far short of the hype, given that much of the money is already in the pipeline.