European stocks slid on dismal Chinese GDP figures; profits. Crude falls. Figures released on Monday indicating that Chinese economic growth has slowed has negatively impacted confidence in Europe.
European Stock Markets lose Confidence
After the announcement of dismal Chinese GDP figures, European shares declined on Monday as the Q2 results season got started.
At 03:30 ET (07:30 GMT), the FTSE 100 in the United Kingdom moved off 0.1%, the CAC 40 in dropped 0.7 percent, While the DAX index in went lower 0.2 percent.
Chinese growth is rapidly declining.
The revelation of statistics suggesting that China’s economic development, an important market for export of Europe’s greatest corporations. Which significantly decreased over the Q2 has negatively impacted optimism in Europe.
There are several red flags in China’s economy.
Exports fell precipitously, especially in June. Consumer prices remained unchanged in June over a year ago. But rather decreased modestly from May’s phases. Showing that sluggish spending is bringing China dangerously near to the deflationary trend. Businesses are now paying much less at the rate of wholesale.
Smaller towns have seen a fall in costs of housing, while large cities began to see this decrease in June. The nation’s construction and real estate sectors, that account for more than a quarter of the GDP. Have already been affected by scores of bankruptcies on debts sold outside of China, were dealt an added hit.
The National Bureau of Statistics revealed on last Saturday that its index of home values, which includes 70 cities. dropped at a yearly average of 2.2 per cent in June following declining at an yearly average pace of just 0.2% in May.
Stoxx Index Rise on US Fed rate hike stance for a halt.
Through the broad Stoxx 600 index rising nearly 3 percent, traders utilized these figures for selling into the prior week’s profits. Details displaying a sharp drop in inflation within the US. That has fueled expectations that the Fed might be about finishing its hardline rate-hiking phase, which could benefit the economy in the US.
Following dismal Chinese GDP figures, oil prices decline.
Monday saw a decline in the price of crude oil as a result of worries over an improving economy. And potential demand from the world’s top petroleum exporter caused by China’s poor growth figures.
At a crucial meeting later this month, China’s top leaders might reveal a significant boost plan. Yet another light of today’s ruling, this month’s summit of senior Chinese leaders would attract further attention. Since the stimulus plan might offer a much-needed boost to both the Chinese and world economies.
In addition, during the weekend, 2of the 3 Libyan crude fields which had been shut down since Thursday—Including the second- biggest in the nation, Sharara. Restarted producing, bringing additional crude to the world markets.
At 03:30 ET, the price of US crude oil futures was down 1.1 percent at $74.50 per barrel. Whereas the price of Brent was down 1.1 percent at $79.02/bbl
