World stock indexes edged lower yesterday on more concerns about global growth, while the dollar hit a seven-month high on growing expectations the Federal Reserve will raise rates next month.

Oil prices bounced back after the International Energy Agency noted unprecedented declines in investment.

A bigger-than-expected fall in Chinese inflation followed disappointing trade figures over the weekend and underlined the problems in an economy that has driven world growth for a decade. But the data also added to expectations of more stimulus measures from Beijing to counter any slowdown.

In the United States, though, Friday’s strong jobs report bolstered expectations the Fed would raise rates next month.

“People are a little nervous because the macro signals are so mixed,” said Andy Sullivan, a portfolio manager with Swiss investment firm GL Financial Group, citing weak revenue results from companies.

The Dow Jones industrial average fell 55.58 points, or 0.31 per cent, to 17,674.9, the S&P 500 lost 5.22 points, or 0.25 per cent, to 2,073.36 and the Nasdaq Composite dropped 35.67 points, or 0.7 per cent, to 5,059.63.

Also weighing on US stocks, Apple’s shares fell after Credit Suisse said the iPhone maker had lowered component orders by as much as 10 per cent.

MSCI’s all-country world index was down 0.4 per cent, while European shares were up 0.1 per cent.

In the foreign exchange market, the dollar index hit its highest since April, rising 0.5 per cent to 99.469, outpacing Friday’s post-jobs report highs.

Longer-dated US Treasuries prices slipped with benchmark yields hovering at their highest in over three months as investors sold bonds to make room for a $24 billion auction of 10-year notes.

Benchmark 10-year Treasuries notes were down 2/32 in price with a yield of 2.349 per cent, up 1 basis point from late on Monday. The yield reached 2.377 per cent on Monday, its highest intraday level since July 21, according to Reuters data.

“Today is about supply and concession building. We are in a bearish rate environment,” said Aaron Kohli, interest rates strategist at BMO Capital Markets in New York.

In the oil market, Brent crude, the global oil benchmark, was up 0.25 cents at $47.44 a barrel, having fallen for four trading days in a row. US crude rose 0.30 cents to $44.17 a barrel.