Hong Kong stock index extended a decline sparked by China’s tech crackdown. Tesla posted better-than-expected results. Jump in!
China demonstrates signs of slowing economic surge
China's major financial institution has been heavily distracted by the immediate soar in borrowing costs after the American Federal Reserve System, while Chinese economic data for May disclosed that the economy of the leading Asian country is losing momentum.
In May, in this Asian country industrial output tacked on by up to 6.8% in contrast with 2017, as the National Bureau of Statistics revealed. It turned out to be lower than the previous reading of 7% as well as experts’ estimate of 6.9%.
Additionally, the bureau informed that in May retail sales went up by only 8.5%, although market experts had hoped for a 9.6% leap after a soar of 9.4% in April.
Investments in fixed assets rallied by 6.1% in May in contrast with the same period of 2017, which is also lower than the estimate of market experts as well as the previous reading of 7%. Evidently, it appeared to be the slowest surge since 1999.
In May, the unemployment rate in urban areas went down to about 4.8% versus April’s reading of 4.9%.
With a steep slowdown in lending surge as well as the threat of an escalating trade dispute with America, China’s enterprises are coming across increasingly quite prospects. The country’s major bank made an attempt to back surge by ramping up liquidity and although it can still lift the Fed's rate for market experts, the very fact that it didn’t do so right now is interpreted as an indication of concern about the Chinese economy.
The data is 100% confirmed by a slowdown in industry as well as retail trade in May that points to a slowdown in GDP for the second quarter.
China’s attempting to provide liquidity for the purpose of mitigating any economic downturn and assisting lenders in meeting their repayment obligations.
Let's see how the stock price of these four companies reacted to their earnings reports released this week.
US Advance quarterly GDP is announced on April 29 at 15:30 MT time.
What events to follow and how to trade during the week of July 2-6?
EUR/USD retraced to 1.1870 after breaking out this level. It should be just a natural sell-off ahead of the further rally up.
The Fed held a much-awaited meeting yesterday. The bank hasn’t made any policy changes. As a result, the USD weakened and EUR/USD rocketed. Jump in to know all the latest news!