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Home / Business / Premarket Stocks: With China's latest GDP data, it's hard to ignore growth fears

Premarket Stocks: With China's latest GDP data, it's hard to ignore growth fears



China's growth has fallen to its lowest level in almost three decades, as the world's second largest economy continues to be under pressure from the trade dispute with the United States.

The country's gross domestic product grew 6% between July and September, my CNN business colleague Laura He reports from Hong Kong. This is the weakest quarterly growth rate since 1992 and a decline of 6.2% in the previous quarter.

Background: The unexpectedly poor number occurred just one week after the conclusion of a preliminary US-China trade agreement to avert further damage. This agreement could give some relief to the Chinese economy. But it is anything but a panacea.

"Ongoing Negotiations Can Benefit Business [sentiment] But despite the potential mini-deal, most US tariffs will remain on imports from China and affect Chinese exports," said Chaoping Zhu, global market strategist at JPMorgan Asset Management.

The Shanghai Composite fell 1

.3% on Friday, erasing the gains the index had made since the announcement of an agreement.

Chinese data showed some recovery in September. Industrial production grew from 4.4% in the previous month to 5.8% and retail sales increased 7.8% in September compared to the same period last year.

Experts warn, however, that a recovery could be short-lived.

"The slowdown in global demand will continue to weigh on exports, fiscal constraints will mean that infrastructure spending will fall in the short term, and the recent boom in real estate is expected to weaken," said Julian Evans-Pritchard, senior Chinese economist for capital. This emerges from a study for customers.

Nomura analysts predict that China's GDP growth will fall to 5.8% in the fourth quarter of 2019 as exports are hit again by the slowing global economy and trade conflict.

Aramco & # 39; s flotation will be delayed … again

Investors will have to wait a bit longer for part of Saudi Aramco's massive listing.

  Saudi Aramco delays the IPO to clarify the implications of attacks.
The date of the blockbuster IPO was postponed to allow the Saudi public oil company to publish quarterly results that would clarify the impact of the attacks on its oil facilities CNN Business announced this month, a well-known source.
Market observers had expected the IPO to begin in the coming days and pave the way for a stock market listing on the Saudi Arabian Tadawul Stock Exchange in Riyadh in November.

What Aramco says: "The company continues to discuss IPO with shareholders, the company is ready and the timing will depend on market conditions and be determined by shareholders."

Remember: The unprecedented September attack on Aramco, the world's most profitable company, has temporarily stopped half of its oil production. However, Aramco quickly restored production and eliminated market fears of a bottleneck.

The company realized that the incident would not disrupt the IPO process, and analysts said it bolstered Crown Prince Mohammed bin Salman's determination to achieve that. But investors clearly want more information about the company's finances before settling on a $ 2 trillion target on Bin Salman. Stocks soared when news came that Prime Minister Boris Johnson was signing a new Brexit deal with the European Union Union had closed. Then the political reality started.

Johnson still has to go through his deal A special session of the British Parliament is scheduled for Saturday. Opposition parties and a group of lawmakers from Northern Ireland say they do not support the agreement and doubt that Johnson will be successful if his predecessor Theresa May fails.

"Johnson has a chance, but she'll be curious," said Kallum Pickering, Senior Economist at Berenberg, on Thursday in a message to clients. Expect the pound to remain nervous on Friday as traders watch over parliamentary math.

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American Express AXP ) and Coca-Cola ( KO ) report results before the opening of US markets.

Today too:

  • The annual meetings of the IMF and the World Bank are held in Washington. with speakers such as Governor of the Bank of England, Mark Carney.

Tomorrow: The British parliament will vote on Prime Minister Boris Johnson's new Brexit deal.


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