European stocks edge up 0.3% on defensive names Markets overall...

• European stocks edge up 0.3% on defensive names
• Markets overall subdued amid China, U.S. growth fears
• Dollar gains as investors seek safety

European stocks crept sluggishly higher on Tuesday as investors sought safety in defensive names, while risk aversion likewise lifted the safe haven dollar following weak Chinese and U.S. economic data that stoked fears of a global recession.

The dollar briefly hit a one-week high as investors piled back in having ditched the greenback last week following lower-then-expected U.S. inflation data, while the Aussie, euro and Chinese yuan buckled.

Europe's benchmark STOXX index .STOXX climbed 0.3% to hit a 10-week high and mark a fifth straight session of gains, led by mining companies as London-listed BHP Group BHPB.L reported strong results.

But S&P 500 futures ESc1 and Nasdaq futures NQc1 dipped, indicating a likely weaker direction for U.S. markets when they open later.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS dipped 0.03% after gains earlier in the day. MSCI's benchmark index has gained 5% from the year's lows but is still down 15% this year.

Just as investors were taking heart from a four-week rally in global equities that pushed markets to their highest in more than three months, Monday's weak Chinese activity data spanning industrial output and retail sales hit sentiment.

Also, U.S. single-family homebuilders' confidence and New York state factory activity fell in August to their lowest since near the beginning of the COVID-19 pandemic, a further sign the world's largest economy is softening as the Federal Reserve raises interest rates.

The picture was mixed across Asian bourses on Tuesday, with Tokyo .N225 and Taiwan benchmarks flat, while South Korean stocks .KS11 put on 0.2%.

Chinese stocks gave up early gains as growth concerns remained after data showed economic activity and credit expansion slowed sharply in July, prompting the central bank to unexpectedly cut interest rates.

The blue-chip CSI 300 index .CSI300 slipped 0.2% after dipping on Monday.

Bond markets, meanwhile, continued their tussle between fears over inflation and recession, which are particularly acute in the euro zone.

Germany's 10-year yield, the benchmark for the euro zone, was up 3 basis points (bps) to 0.932%, holding below a two-week high of 1.025% touched last Friday. DE10YT=RR

DOLLAR HAVEN Investors' latest move to the safety of the dollar came after the raft of weak global economic indicators.

The U.S. economy contracted in the first and second quarters, amplifying a debate over whether the country is, or will soon be, in recession.

On Tuesday, the dollar index =USD , which measures the greenback against six major peers, rose as high as 106.87, its strongest since Aug. 8.

The euro EUR=EBS , the most heavily weighted currency in the dollar index, dropped 0.28% to 1.01305.

The Australian and New Zealand dollars were put on the defensive by frail global data.

Brent crude LCOc1 futures fell 1% to $94.11 as the bleak economic data from top crude buyer China renewed concerns of a global recession, and the market monitored talks on a reviving deal that could allow more Iranian oil exports.

WTI crude CLc1 futures shed 0.98% to $88.52 a barrel. Spot gold dipped slightly to $1,775.6 per ounce as the stronger dollar dented bullion's appeal and investors watched for signs of future rate hikes by the federal reserve. XAU=

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