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Trump's trade was hammering Chinese exports and that's driving a global selloff

REUTERS / Adrees Latif JSK A global sell-in stock took place Friday morning after two continents. The Shanghai Composite Index was down 4.4% after China's biggest brokerage released a sell rating on a major state-owned company and new data showed that Chinese exports dropped in February Chinese exports fell 21 % last month – partially driven by the US-China trade war European equities were trading down as well as after the European Central Bank cut its growth forecast to 1.1% and announced stimulus measures, signaling an economic slowdown. German futures orders even though analysts were expecting them to go up. Friday's jobs were ahead of Friday's jobs. Chinese stocks fell by their most in nearly five months after the nation's biggest brokerage issued a rare sale rating on the People's Insurance Company (Group) of China, most likely naling the government's desire to slow a market that has outperformed global rivals over the past two months. New data showing a 21% decline in Chinese exports in February – partly driven by the US-China trade war – did not help matters Citic Securities Co. Customs clients that the company was "significantly overvalued" and that its stock could decline more than 50%, according to Bloomberg. Yahoo Finance off in stocks. Growth in China has actually been slowing down for a while, and at the same time Europe is flirting with recession. "Factory orders in Germany fell by 2.6% month-to-month in January, well below the consensus for 0.5% The year-over-year rate increased marginally to…

 China react loss REUTERS / Adrees Latif JSK

  • A global sell-in stock took place Friday morning after two continents.
  • The Shanghai Composite Index was down 4.4% after China’s biggest brokerage released a sell rating on a major state-owned company and new data showed that Chinese exports dropped in February
  • Chinese exports fell 21

    % last month – partially driven by the US-China trade war

  • European equities were trading down as well as after the European Central Bank cut its growth forecast to 1.1% and announced stimulus measures, signaling an economic slowdown.
  • German futures orders even though analysts were expecting them to go up. Friday’s jobs were ahead of Friday’s jobs.

Chinese stocks fell by their most in nearly five months after the nation’s biggest brokerage issued a rare sale rating on the People’s Insurance Company (Group) of China, most likely naling the government’s desire to slow a market that has outperformed global rivals over the past two months. New data showing a 21% decline in Chinese exports in February – partly driven by the US-China trade war – did not help matters

Citic Securities Co. Customs clients that the company was “significantly overvalued” and that its stock could decline more than 50%, according to Bloomberg.

 China Yahoo Finance

off in stocks. Growth in China has actually been slowing down for a while, and at the same time Europe is flirting with recession.

“Factory orders in Germany fell by 2.6% month-to-month in January, well below the consensus for 0.5% The year-over-year rate increased marginally to -3.9%, “according to Claus Vistesen or Pantheon Macroeconomics.

 German new orders Pantheon Macroeconomics

” German industrial orders fell by their steepest amount in seven Months in January, “Russ Mold, an investment director at AJ Bell, told clients in his morning email. “It is understandable why investors have been so worried about the outlook for global growth when you see figures like these.” Friday morning after the European Central Bank on Thursday cut its eurozone growth forecast for 2019 to 1.1%, down from 1.7% three months ago. The ECB’s president, Mario Draghi, also announced interest rates would be steady in the rest of this year and promised a tranche of long-term loans for banks in September.

  • US futures dipped ahead of the Friday release of the monthly US jobs report. Earlier this week, the US trade was defeated by a 10-year high in 2018 despite President Donald Trump’s efforts to narrow it.

“Chinese and Asian stocks were whacked and, combined with the ECB’s pessimistic outlook, the picture today looks decidedly risk-off, “said Neil Wilson, the chief marketing analyst at Markets.com.

These factors” are beginning to come together to paint a more dismal outlook for global growth, “Lindsey Piegza, the chief economist at Stifel Nicolaus & Co., told Bloomberg TV.

Here’s a roundup of the damage as of 9:02 am in London (4:02 am ET):

  • The Shanghai Composite Index fell 4.4%, Hong Kong’s Hang Seng index was down almost 2%, and the Nikkei 225 was down 2%.
  • The Euro Stoxx 50, the DAX, and the FTSE 100 were down by more than 0.5%.
  • US futures signaled a decline of 0.8% to 1.2% for the Dow, the S&P 500, and the Nasdaq.


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