European open – Flat after Chinese data

Markets flat after Chinese data

It’s looking a little flat ahead of the European open on Monday, with data from China overnight offering another reminder of the damaging effects of trade wars.

Source – Thomson Reuters Eikon

China’s economy grew by only 6.2% in the second quarter, its slowest rate of growth in 27 years. There’s no doubt in anyone’s minds that the trade war is a major contributing factor here, especially coming at a time when the economy was already in the midst of a slowdown as it transitions away from the heavy investment, export led model to a more sustainable domestically driven one.

While industrial production, fixed asset investment and, maybe more importantly, retail sales all exceeded expectations, all the focus has been on that lower growth number. Unemployment also rose slightly but this has been volatile in the past so won’t be causing too much concern.

Chinese stocks staged something of a recovery as the session wore on but the trend is not their friend at the moment. Stocks throughout the rest of the region only posted small gains which hasn’t offered much direction for Europe and the US, where futures are looking a little flat currently.

Economic Calendar

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This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam
Craig Erlam

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