Stocks in Europe and the United States are falling as a result of Chinese data and Fed comments.

0

Stocks in Europe and the United States are falling as a result of Chinese data and Fed comments.

On Thursday, stock markets in Europe and on Wall Street were lower as traders digested conflicting economic data and the Federal Reserve hinted at no changes in short-term monetary policy.

In midday trading, European indices were down approximately 1.0 percent, while the Dow Jones index was down 0.4 percent in early trade.

The Nikkei index in Tokyo had already lost 1.2 percent earlier in the day, as investors remained concerned about Japan’s viral situation.

China delivered a slew of data on Thursday that showed steady but declining economic growth.

“China’s second-quarter GDP statistics were marginally better than predicted, but the country’s economic future remains uncertain,” said Danni Hewson, a financial analyst at AJ Bell.

“A similar sentiment is spreading to other countries, implying that the post-Covid bounce may struggle to maintain its momentum.”

China’s economic growth dropped to 7.9% in the second quarter, down from 18.3% in the previous three months, when the economy roared back to life following a pandemic-induced shutdown last year.

According to the most recent data, China should be on track to fulfill its six percent growth objective this year.

The National Bureau of Statistics of China said the world’s second-largest economy was continuing to “recover steadily,” but warned against global uncertainty and an unequal domestic economic recovery.

It comes a day after Federal Reserve Chairman Jerome Powell indicated the US central bank would keep its stimulus in place until the economy was well on its path to recovery.

In Europe, the pound rose versus the euro after data revealed that Britain’s unemployment rate is declining as the economy recovers.

Meanwhile, employment openings in the UK are on the rise as reopened businesses, notably in the hospitality sector, struggle to fill positions.

FTSE 100: DOWN 0.9 percent to 7,024.22 points in London.

DAX 30 in Frankfurt is down 1.2 percent at 15,607.14.

CAC 40 in Paris is down 1.2 percent at 6,481.73 points.

At 4,054.59, the EURO STOXX 50 is down 1.1 percent.

DOW DOWN 0.4 PERCENT AT 34,803.81 IN NEW YORK

Nikkei 225 in Tokyo is down 1.2 percent at 28,279.09. (close)

The Hang Seng Index in Hong Kong is up 0.8 percent to 27,996.27. (close)

Shanghai Composite: 3,564.59, up 1.0 percent (close)

At 2100 GMT Wednesday, the euro/dollar was trading at $1.1816, down from $1.1841 earlier.

Pound/dollar: $1.3849, down from $1.3863.

Euro/pound: 85.33 pence, down from 85.39 pence.

Dollar/yen: 109.88 yen, down from 109.95 yen.

Brent North Sea crude is currently trading at $73.62 a barrel, down 1.5 percent.

At $72.04 per barrel, West Texas Intermediate is down 1.5 percent.

Share.

Leave A Reply