By Max Bernhard 

Chinese stocks dropped sharply Friday after the economy slowed further in the third quarter, adding to mounting concerns about global growth.

The benchmark Shanghai Composite index fell 1.3%, its biggest decline in a month. Fresh data showed that China's economy grew 6% in the quarter as business activity continued to deteriorate in the world's No. 2 economy. Each quarterly slowdown in growth has pulled the economic performance to new lows not seen since the current measure of output was adopted in 1992.

"The figures are painting markets in red today," said Ipek Ozkardeskaya, a senior analyst at London Capital Group. "Pulling below 6% would be really bad for investor sentiment, not only in China, but globally."

Elsewhere, stocks in major markets were largely flat Friday as investors weighed evidence of the further slowdown in China's economy and the uncertainty surrounding Brexit. The Stoxx Europe 600 edged down 0.1%, while U.S. stock futures posted small declines.

In the U.K., the FTSE 250 equity index ticked up 0.1% and the pound wavered between gains and losses against the U.S. dollar. Investors are watching developments closely before U.K. lawmakers vote at the weekend on a a draft Brexit agreement struck with the European Union. Prime Minister Boris Johnson is trying to muster enough support for the deal.

French auto maker Renault was the biggest loser in Europe, declining 13% after cutting its full-year revenue and operating-margin guidance on a sales slump outside Europe and higher costs from developing lower-emissions car models.

French food giant Danone dropped 6.9% after it lowered expectations for its like-for-like sales growth in 2019.

Later in the day, investors may get fresh clues on potential U.S. central bank activity when Federal Reserve officials including Robert Kaplan and Richard Clarida make speeches. Earnings from American Express and Coca-Cola are also on tap.

Write to Max Bernhard at Max.Bernhard@dowjones.com

(END) Dow Jones Newswires

October 18, 2019 05:20 ET (09:20 GMT)

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