All the day’s economic and financial news, including new import and export figures from China and Germany
- Chinese import and export growth both slowed in July
- Experts: Domestic demand may be softening
- German imports and exports fell in June
- But markets hit record highs
The global economy is still on a steady growth path, according to the latest heathcheck from the Organisation for Economic Co-operation and Development.
The OECD has rounded up the latest economic data (Composite leading indicators, or CLIs), and concluded that there is “stable growth momentum” across the 35 advanced countries that make up the OECD area as a whole.
The CLIs continue to point to stable growth momentum in Japan, Canada and the euro area as a whole. Stable growth momentum is now also expected in theUnited States and Italy,while in the United Kingdom the CLI confirms the tentative signs of easing growth flagged in last month’s assessment. Prospects of growth gaining momentum remain unchanged for Germany and France, as well as for China and Brazil.
Amongst other major emerging economies, the CLIs continue to anticipate stable growth momentumin India while in Russia tentative signs of easing growth remain.
Sterling has slipped to its lowest level against the euro last October.
The pound dipped by 0.14% to €1.1032 in quiet trading, meaning one euro is now worth 90.63p.
Here’s a neat chart showing the slowdown in Chinese trade growth last month.
China July Trade in USD:
Imports (red line)+11%, exp 18% last 17.2%
Exports (blue line)+7.2% exp 11% last 11.3% pic.twitter.com/24swpZwPuU
The morning has been all about trade data, with the two powerhouses of Asia and Europe going head to head, to equally disappointing effect.
On the face of it, both German and Chinese trade improved, with their balance of trade improving further. However, this comes as a result of a disproportionately larger fall in imports than the drop in exports.
Investors seem to be taking today’s Chinese trade figures in their stride….
Chinese import and export missed forecast.
Remember when bad data from china used to move the market pic.twitter.com/jzyhLzt6ee
Newsflash: World stock markets have hit their highest ever levels, following last night’s rally on Wall Street.
The MSCI All-Country World Stocks Index has nudged up to 480.76 points, Reuters reports, helped by Dow Jones’s run of nine record highs in a row (and counting…)
MSCI World at new high. Aug gain would be longest mthly winning streak since ’03, 2nd longest in 30-yr history. Yet only 22% above 10yrs ago pic.twitter.com/fxdOnjI5sP
Bookmaker Paddy Power is having another rough morning.
Shares have fallen 5% to their lowest level in two years, after the company revealed it might take a year to get its new CEO in place.
“They recognise we both have 12 months notice periods and they’re in the middle of the deal. Peter’s coming here, we all hope it will be sooner but equally it will be within six to 12 months.”
“Picking Peter Jackson as CEO is a brave move when you’re losing someone of Breon Corcoran’s pedigree.
He’s only held the hot seat at FTSE 100-listed Worldpay’s UK division since March, and Paddy Power Betfair needs strong leadership now more than ever. With wider industry issues at play here, the market is yet to be convinced it’s the right move.
Translation: It’s quiet out there in the markets….
Good Morning !! Asia mixed, Europe quiet. DXY softish. Crude, Gold both firm. Treasuries flat. S&P futures trading 1 pt below Fair Value.
European stock markets are subdued this morning, as this morning’s trade figures fail to cheer traders.
In London the FTSE 100 dipped by 3 points or 0.04%.
It’s a double-dose of disappointing trade data.
German July Imports comes in at -4.5% m/m (f’cast 0.2%) vs 1.3% in June
German trade numbers disappoint as export dropped by 2.8% vs +0.2% expected. Current account balance €22.3bn in June vs €23bn cons forecast. pic.twitter.com/IAtAB5DL7R
German trade data weaker than expected, like China
The slowdown in Chinese trade growth last month has not pleased the City.
Capital Economics fear that China’s economy could be cooling:
“Despite an uptick at the end of the second quarter, trade growth now appears to be on a downward trend. In particular, the sharp decline in import growth since the start of the year suggests that domestic demand is softening,”
This morning’s Chinese trade data for July has got Q3 off to a slow start with imports only rising 11% a sharp fall from June’s 17.2%, which raises some concerns that domestic demand may be softening.
Exports were also a bit of a worry as they only rose 7.2%, below expectations of 11% and a fall from June’s 11.3%. This would appear to suggest that while global demand is still positive it may well not be as strong as initially thought, which might be a concern further down the line if it suggests a start of a trend.
Crude oil imports stood at 34.66 million tonnes, down from 36.11 million tonnes a month earlier, while imports of iron ore slipped to 85.74 million tonnes from 94.7 million tonnes in June.
Coal imports also dipped to 19.46 million tonnes, a four-month low.
The numbers have painted a dull picture to start the third quarter of this year. It is important that global demand improves because that would imply that the world economy is healthy.
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
China trade data shows evident slowdown
Imports up 14.7% y-o-y, vs previous 23.1%
Exports up 11.2% y-o-y, vs previous 17.3%
Dow has rallied for 10 days in a row (605 points). Sequence of gains has extended to 11 days only once since Fri 3 Jan 1992 @MarketsContext
Link : Chinese and German trade data both disappoint – business live