European Stock Market Still Subdued as Chinese Growth Stalls
The global economy may be in trouble, and European stock markets are showing it. Wednesday’s trading is expected to be subdued due largely because many countries rely on exports from China for their own economies; this relationship could change quickly if there continues to happen an imbalance between two such large powers as these nations have been known centuries before today when one country dominates all others. In the current climate of competition for customers, it is likely that we will see some firms working in opposition to one another. This could lead us down an unhealthy path where nothing gets accomplished unless adjustments need be made soon or there’s a meeting with your competitors so you can work together instead!
DAX Reports That Rallied The Growth of The Chinese Economy
The DAX futures contract in Germany traded flat while CAC 40 and FTSE 100 contracts for the UK fell slightly. China’s economy slowed down because of Covid-19 outbreaks as well as supply disruptions earlier this week, but economic data showed positive signs when it came out later Wednesday night with a 0.7% growth rate over July’s 8%.
The Chinese economy is still recovering from the 2008 crisis, with economic growth slowing down to its weakest pace since July 2020. Retail sales grew 2.5% year-on-year in August (a sharp drop from 8 5% last month) and at one of its slowest rates yet – which will likely have an effect on consumer spending going forward due to a lack in jobs or rising costs for food products like eggs that are not produced locally by Mexico City’s farmers’ market organization Al Dia Dencia Asociacion Pro Derechos Agais Unidos .
There’s a lot of data coming in today, but the focus has been on Europe where consumer prices rose 3.2% over August and 0.6 percentage points more than July 2018 – an increase that is increasing pressure for central banks to slow down stimulus programs as inflation starts picking up steam again after being weak this past year due largely from lower energy costs which had kept it at bay until now (with oil prices finally spiking). In addition we have figures out from France with their August Consumer Price Indexes output scheduled later Wednesday morning followed closely by Italian ICPI-M Indices published around 2:30pm GMT
The release of inflation data in the US on Tuesday has created more uncertainty over when to taper asset purchases by the Federal Reserve. Backed into a tight spot as they are, Europe’s retail sector will likely be front and center at Wednesday’s earnings report from H&M (ST:HMb)and Inditex companies such as Martinez European clothing retailers).
Statistics From Crude Oil
Crude prices strengthened Wednesday, boosted by a larger than expected drawdown in U.S. crude stocks coupled with expectations of an imminent recovery as countries get on top the recent Covid-19 outbreak and start using up resources again following their hiatus during which time they reduced oil production rates due to low demand for transportation fuels such as gasoline that powers cars and trucks among other uses.
Crude oil supplies were in a tight spot last week, with production cut and refineries shutting down due to Hurricane Ida. This led the American Petroleum Institute’s (API) crude stock data for September showing an extra draw of 5 million barrels by late Tuesday evening; however investors will be awaiting further news from US Energy Information Administration when they release their upcoming report later today which may affirm or deny these findings.
The International Energy Agency has predicted that Covid-19 vaccine rollouts could drive an economic rebound, resulting in a sharp jump in demand of 1.6 million barrels per day next month with continued growth to end-of-year at 2%. By early afternoon on Wednesday U.S crude futures traded up 0.7%, while Brent rose even further by 3%/+0’50” when trading closed for business today (Wednesday).
