Fear has risen in the stock markets after China's industrial output slumped and triggered a sell-off that spread worldwide. Cracks in the European economy continue to show and weigh on the shares of this region.
China's industrial output grew strongly in November from 5.9% to 5.4%, its lowest level since 2009. The data pointed to weak performance in key export sectors such as computers, electronics and automobiles.
Retail growth also declined 8.1%, the slowest pace in 15 years, says Russ Mold, investment director at AJ Bell.
China's November trade data showed signs of slower growth in the rest of the world. Export growth declined from 1
"In 2018, there were some problematic numbers from China, and another group has now helped to affect markets in Asia and Europe," said Mold. "China has a hard time maintaining high levels of economic growth, and there is concern that the impact of the US-China trade war is beginning to be felt, suggesting that China's economic data could be in further shocks by early 2019, if not The countries ensure a permanent ceasefire. "
The problem is also buzzing in Europe. Fears over Italy's budget remained at the forefront on Friday after the European Union suggested that the country's budget deficit should be improved. British Prime Minister Theresa May was repelled by EU leaders in her attempts to renegotiate Brexit . Germany's problems continued as PMI composite numbers eased in December.
This is followed by an already subdued mood in Europe. The European Central Bank announced on Thursday that it would lower its economic growth forecasts and end the stimulus package for buying bonds. France's protests against the yellow vest are damaging the country's economy.
Here is a summary of the markets:
- In Asia the Shanghai Composite closed 1.7%. The broadest MSCI index for Asia-Pacific equities outside Japan fell 1.3%. The Japanese Nikkei fell 2% on Friday.
- The Euro Stoxx 50 fell by 10.20 in London by 1.1% (5.20 EST). DAX, FTSE and CAC fell by more than 1%.
- US Stock Index Futures follow this example. The Nasdaq, the S & P 500 and the Dow 30 fell by around 1% in the forewar market.
- China's suffering weighed on raw materials . Copper futures fell 1%, while Brent crude fell despite agreed OPEC and Russian cuts last week. The oil has fallen by 0.6%.
- European vehicle inventories also plunged after data showed that new EU licenses fell 8.0% in November, after declining by 7.3% in October. Renault fell by 3,6%, while Volkswagen, Peugeot, Daimler fell by 2,4%. Germany BMW fell by 1,9% and the Fiat Chrysler by 2%. Car sales are expected to fall to 2% in 2018, compared to 5% in 2017.
- US $ Index futures up 0.5%