Eurozone growth figures are stronger than first estimated, but a big fall in Chinese imports and exports show its economy remains shaky
- Markets boosted by growth figures
- Eurozone grew by 0.4% in Q2
- Alarm as Chinese imports slide 13%
- Shanghai market slides, then bounces
The FTSE 100 has now closed and has managed to clock up another day of gains. Building on Monday’s mosest o.5% rise, the index of London-listed bluechips has ended today’s session up another 1.2%, or 72 points, at 6,146.1.
Traders say this morning’s upgraded growth figures for the eurozone brought a much needed boost to market sentiment after the turmoil of recent weeks.
Although the Dow hogs the headlines, the S&P 500 is a better measure of the health of the US stock market.
And it’s gained 1.5% today, meaning the index has burst back out of correction territory (defined as being 10% below the recent high).
The near 2% surge in US markets is mostly a bounce back from Friday’s sell-off but weak Chinese trade data possibly sets the tone for more stimulus from China.
The logic is that the PBOC won’t want to rock markets with one-off currency devaluation. More likely, China will be more incremental in weakening the exchange rate with more cuts to bank reserves and interest rates if the economy still shows signs of slowing.
Source: The Guardian Circular Economy RSS