China's 20% slump in September inbound shipments dents miners AB InBev gains after $106 billion accord to buy SABMiller Global stocks ended the longest winning streak in seven months and metals fell as a bigger drop in Chinese imports than analysts forecast underscored how weakness in the world’s second-largest economy is affecting trading partners. Anheuser-Busch InBev SA rose after announcing an agreement to buy SABMiller Plc. Miners led declines in the MSCI All-Country World Index after China reported a 20 percent drop in September imports in dollar terms. The index fell for the first time in 10 days, and U.S. stocks futures also retreated. The Australian dollar slipped after a nine-day rally, alongside declines for copper and gold. Treasuries gained with the euro and yen on demand for haven assets, while sterling touched an eight-month low versus the single currency. Global growth concerns sparked by China’s import slump were fanned by reports showing U.K. inflation turned negative and German investor confidence fell to the lowest in a year. JPMorgan Chase & Co. opens the reporting season for major U.S banks on Tuesday, and Intel Corp. also post earnings, as investors seek signs for how China’s slowdown is affecting global companies and whether it will deter the U.S. Federal Reserve from raising interest rates. “It’s a bit back to reality this morning,� said Guillermo Hernandez Sampere, who helps manage about 150 million euros ($170 million) as head of trading at MPPM EK in Eppstein, Germany. “The moment the Fed will do something about rates, it will be a signal for markets that the economy is in an OK shape. As long as this does not happen, money will go in and out of equity markets and this creates so much volatility.� Stocks The MSCI All-Country World Index fell 0.5 percent at 8:23 a.m. in New York. Standard & Poor’s 500 Index E-mini futures expiring in December slipped 0.5 percent. The U.S. stock gauge ended little changed on Monday. The Stoxx Europe 600 Index dropped 1.3 percent, heading for its first two-day decline in two weeks. AB InBev climbed as much as 4.5 percent after SABMiller accepted an increased 69 billion pounds ($106 billion) offer. SABMiller, which had rejected several offers, surged 9 percent in London. Molson Coors Brewing Co. jumped 8.7 percent in U.S. premarket trading on speculation it will buy a MillerCoors stake likely to be sold as part of the AB InBev combination. Johnson & Johnson was little changed in premarket trading after posting third-quarter earnings that beat analysts’ expectations and sales that fell short. The company also announced a $10 billion share buyback. SAP SE gained 5.3 percent after reporting sales and operating profit that beat analysts’ estimates. Commodity company Glencore Plc dropped 5.1 percent. Currencies The Australian dollar weakened 0.9 percent to 72.93 U.S. cents, halting the longest rally in more than six years. The New Zealand’s dollar dropped for the first time in 11 days. China is the biggest trading partner for both commodity-driven countries. The pound fell as only the second negative inflation rate since 1960 strengthened the case for the Bank of England to delay raising interest rates. Sterling dropped 1.1 percent to 74.80 pence per euro, after touching 74.85 pence. It also lost 0.9 percent to $1.5214. The yen strengthened 0.3 percent to 119.73 per dollar, the euro advanced 0.1 percent and the Swiss franc added 0.4 percent. Sweden’s krona jumped to the strongest level in more than three months after a report showed the nation’s inflation rate unexpectedly turned positive last month. Bonds Treasuries advanced following China’s import data, with the yield on the benchmark 10-year note falling three basis points to 2.06 percent. The market was closed on Monday for a U.S. federal holiday. “Further disappointing Chinese data weighed on Asian equities, supporting Treasuries,� said Nick Stamenkovic, a fixed-income strategist at broker RIA Capital Markets in Edinburgh. “I doubt 10-year Treasury yields will exceed 2.3 percent by year-end given ongoing fears that weaker emerging-market growth will spill over to developed economies.� The yield on German 10-year bunds was little changed at 0.58 percent, after falling four basis points on Monday. Yields on similar-maturity Italian bonds fell one basis points to 1.66 percent. Commodities West Texas Intermediate crude was little changed at $47.11 after tumbling 5.1 percent on Monday, the most in six weeks. Global demand for oil is growing while non-OPEC countries are producing less, according to Abdalla Salem El-Badri, the secretary-general of Organization of Petroleum Exporting Countries. The 12-member group said it pumped 31.57 million barrels a day last month, the most since 2012, according to its monthly market report. Copper dropped from the highest level in three weeks, declining as much as 1.2 percent to $5,250 a metric ton in London, while zinc lost 1.9 percent. Gold for immediate delivery fell 0.6 percent to $1,156.72 an ounce following a two-day advance. Emerging Markets The MSCI Emerging Markets Index retreated from a two-month high, sliding 1.1 percent. Currencies from Indonesia, Malaysia and Taiwan weakened more than 0.8 percent versus the dollar. A gauge of exchange rates for 20 developing nations declining for a second day, losing 0.6 percent. The Hang Seng China Enterprises Index fell from a seven-week high in Hong Kong, losing 1 percent. The Shanghai Composite Index added 0.2 percent, as technology and consumer companies rallied. Turkey’s lira fell for a third day, losing 0.9 percent, and bonds declined. Prime Minister Ahmet Davutoglu said on Monday that Islamic State was the main suspect in bombings over the weekend that threatened to increase political tension before general elections next month. The Borsa Istanbul 100 Index dropped 1.5 percent.

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