Arab Today, arab today global markets on tenterhooks awaiting china data
Last Updated : GMT 01:27:57
Arab Today, arab today
Arab Today, arab today

Global markets on tenterhooks awaiting China data

Arab Today, arab today

Arab Today, arab today Global markets on tenterhooks awaiting China data

Global stock markets
Shanghai - AFP

Global stock markets will be on edge this coming week as China announces a slew of data investors will comb for clues about slowing growth in the world's second-largest economy.

The government is scheduled to release monthly trade and inflation figures, as well as industrial output, fixed-asset investment and retail sales in the coming days.

An official Chinese manufacturing survey last week sent world markets into a tailspin, as investors gave vent to worries China's economy is headed for a "hard landing".

Although analysts cautioned not to read too much into the monthly release of the Purchasing Managers' Index (PMI), Chinese growth is clearly slowing and more weak data could be an excuse to sell.

"There is a risk (of overreaction) because investors' confidence level is at a very fragile stage. Any data that's not on the good side, investors will react more than they should," Jackson Wong, associate director at Simsen International Financial Group in Hong Kong, told AFP.

China's economy expanded 7.0 percent in each of the first two quarters, slowing from 7.4 percent growth last year, which was its weakest since 1990.

But investors were alarmed by authorities' surprise lowering of the yuan currency's central rate against the US dollar by nearly five percent in a single week last month.  

In a bid for more sustainable growth, Chinese policymakers are seeking a tectonic shift to domestic consumption and away from state-led investment.
"Pessimism over China's short-term outlook is overdone and a growth pick-up in the second half is already in the pipeline," ratings agency Fitch said in a report Friday.

"But expectations for the economy's growth potential in the medium term are shifting lower as the scale of the restructuring challenge becomes clearer."

ANZ Banking Group forecasts China's gross domestic product (GDP) growth will slump to an annual 6.4 percent in the third quarter, before rebounding to 6.8 percent in the October to December period -- but still below the government's full-year goal of around 7.0 percent.

"Further aggressive monetary easing and proactive fiscal policy, along with financial liberalisation, are needed to maintain GDP growth" at the official target, it said in a research report.

- Market bottom -

China last month reduced interest rates and cut the amount of money banks must hold in reserve to try to bolster its economy and end the country's worst stock market rout in almost two decades.

Japanese bank Nomura is forecasting "weak" trade data for August with exports falling 7.0 percent year-on-year and imports dropping 10 percent. Consumer price inflation could tick up to 1.8 percent for the month on higher pork prices, though the threat of deflation remains, it said.

But many analysts expect China to avert a hard landing, even though economic growth will definitely slow this year.

"China's economy has certainly been weak this year and still faces further downward pressures, but we think fears of an economic hard landing due to stock market gyrations are exaggerated," UBS economists Donna Kwok and Wang Tao said in a research report.

"While it is difficult to confirm whether GDP growth was really close to 7 percent as reported, it has certainly not grounded to a halt. Neither is it in the process of falling apart as widely proclaimed by some China bears."

Even so, China's stock market, which was down nearly 40 percent from its recent peak by Wednesday -- the last day of trading before a holiday for Japan's defeat in World War II -- could fall further in the coming week.

After a debt-fuelled rally that sent the market up 150 percent in a year, shares have room to go lower.

"The (Chinese) market is likely to fall after it opens on Monday to release accumulated risks during the holiday," Phillip Securities analyst Chen Xingyu told AFP.

"The market still has risks because there is an argument on where the market bottom is."

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today global markets on tenterhooks awaiting china data Arab Today, arab today global markets on tenterhooks awaiting china data

 



Arab Today, arab today
Arab Today, arab today Prepares to present her new collection

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Optimism on the front line

GMT 07:24 2017 Monday ,20 February

Optimism on the front line
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic

GMT 13:43 2017 Sunday ,19 February

Local institutional buying lifts Oman shares higher

GMT 15:33 2017 Saturday ,18 February

Lock-up shares worth 39 bln yuan eligible for trade

GMT 09:49 2017 Saturday ,18 February

Qatar Stock Exchange Index Gains 190.17 Points This Week

GMT 09:15 2017 Friday ,17 February

Asia stocks retreat after week-long Trump rally

GMT 08:14 2017 Friday ,17 February

Bahrain Bourse daily trading report

GMT 21:28 2017 Thursday ,16 February

US Stocks End High on Tuesday

GMT 21:18 2017 Thursday ,16 February

Chinese Yuan Strengthens to 6.8632 Against USD Wednesday
View News in Arabic - Business: أسواق مالية
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Egypt to hold first session of Arab film festival

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 21:49 2017 Thursday ,16 February

Scientists develop new therapy

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday