Global stocks tumble as investors weigh Chinese GDP data
  • Vote Up0Vote Down venynxvenynx
    Posts: 4,525Member
    Global stocks tumbled on Thursday after the latest economic data out of
    China showed a return to growth by posting better-than-expected metrics,
    aside from its retail sales.To get more China economy news, you can visit shine news official website.

    China's mainland benchmark index, the Shanghai Composite fell 4.5%, and Hong Kong's Hang Seng fell 2.1%.

    Gross domestic product for the world's second-largest economy rose 3.2%
    in the three months ending June, above estimates, but its retail sales
    fell short of forecasts by dropping 1.8% in June.



    China's "surprise" jump in GDP was well above market expectations of
    2.5% growth, said Jeffrey Halley, a senior market analyst at OANDA.

    But "the headline number flatters to deceive," he said, while pointing
    out that "the Chinese domestic consumer appears to be more reluctant
    than anticipated to go outside and consume."

    China's exports dropped 3% compared to a year earlier, in a sign that
    its trade situation might be one of its "crucial challenges."

    "The question being, is China ramping up production of export-related
    goods that end up stored on the docks awaiting a new overseas home?"
    Halley said.

    China's stock falls continued in Europe, with the pan-European Stoxx 50
    falling 0.5% ahead of a European Central Bank meeting at which leaders
    are likely to hold off on any new monetary stimulus.

    Investors are expected to watch for the European Union's summit on
    Friday for signs that a recovery fund which propelled southern European
    debt may soon be approved, Reuters said.

    Futures tied to the S&P 500 partially reversed the previous day's
    gains by dropping 0.6% despite hopes of a coronavirus vaccine by Moderna
    and strong earnings delivered by Goldman Sachs.

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