European update – Markets shrug off Chinese data

Chinese economic reports encouraging

It’s been a sluggish start to the trading week, with there being no lack of market headlines but rather little movement on the back of it.

We’re seeing small gains in Europe early in the day and US futures are posting marginal gains, continuing the trend we’ve been seeing this week.

Source – Thomson Reuters Eikon

Take this morning for example. We were treated to a selection of expectation-beating economic reports from the world’s second largest economy and investors simply shrugged it off like it does really matter. Except it very much does and a slowdown in China – which remains locked in a trade war with the US – has contributed to expectations of slower global growth this year.

I’m not one to get carried away with one batch of encouraging data and the longer term trend is very much against China, but these numbers may at least suggest all is not as bad as feared. And if a trade deal is struck in the coming months with the US, as many expect, perhaps things could even improve.

Economic Calendar

For a look at all of today’s economic events, check out our economic calendar.

Content 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 Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

Craig Erlam

Craig Erlam

Former 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.