Today’s Stock Exchanges, July 17th. China’s growth falls short of expectations: new stimuli from Beijing are needed
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China gives new worrying signals to the rest of the world, releasing lower-than-expected GDP data. Beijing did indeed grow by 6.3% annually in the second quarter, but the figure compares with a quarter in which closures due to Covid were raging and with an analyst forecast that was higher than 7%. The only positive signal came from industrial production (up 4.4% from 3.5% in May), while widespread weaknesses emerged from retail sales in June (collapsed to +3.1% in June from + 12% previous) and from investments in real estate, one of those that has suffered the most in recent times. Furthermore, Beijing has set a new record for youth unemployment with 21.3% in June and the prospect that there are new increases to come. On the markets, the data was immediately followed by the implicit request for new stimuli from the Authorities. On the basis of the data, the European stock exchanges are moving weakly while investors still keep their sights on the American quarterly.
The EU starts weak after the Chinese data
European stocks opened lower, disappointed by the slowdown in the Chinese economy. After the first trades, Frankfurt fell by 0.56%, London by 0.44%, Paris by 0.87%, Madrid by 0.26%.
China’s second-quarter gross domestic product increased by 0.8% over the previous three months, slightly above growth expectations of 0.5%, but a substantial slowdown from the +2.2% recorded in the first three months of the year. On an annual basis, GDP rose by 6.3%, thanks above all to a lower comparison base compared to the period last year which suffered the impact of Covid, below the expected 7.3%. For the rest of the day, there are no further strong macro indications, with the exception of the inflation data in Italy in June.
Uncertain start for Milan
Uncertain start to the session for the stock market which, after the decline in the early stages, returns to parity. The Ftse Mib index now marks -0.02% at 28,658 points, after having touched -0.45% in the initial stages. Piazza Affari does better than the other European stock exchanges after closing very well the previous week; Meanwhile, the macro data from China is disappointing, with GDP growing in the second quarter but less than expected. Banks rise on the list with Bpm + 2.2% after the news released on Friday with the markets closed of the creation of an e-money hub with FSI and Bcc Iccrea. Rises for Mps (+1.7%), Bper and Unicredit on +0.7%, firm Intesa. Among the other blue chips, industry is down, with Pirelli -1.1%, Interpump -1%. Moncler sells 2.9%. Energy stocks were mixed, with oil stocks losing ground after the drop in crude oil prices.
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