China's frail growth could weigh on companies with exposure to the world's second-largest economy, including Apple, big chipmakers and luxury retailers as they report quarterly results in the next few weeks.

Wall Street is bracing for a steep drop in second-quarter U.S. earnings, with profit margins expected to be hurt by U.S. inflation and weaker spending. Both U.S. and European companies with exposure to China could be hit by that economy's sluggish growth as its post-COVID momentum has faltered rapidly.

China's weak economic figures have weighed on its stock market, limiting the Shanghai Composite Index's gain in 2023 to 2.6%, compared to the S&P 500's 18% increase.