Chinese Stocks Slide on Economic-Growth News

Date : 10/18/2019 @ 1:31PM
Source : Dow Jones News

Chinese Stocks Slide on Economic-Growth News

By Max Bernhard 

Chinese stocks dropped sharply Friday after data showed the Chinese the economy slowed further in the third quarter, adding to 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."

The Stoxx Europe 600 gauge and futures tied to the Dow Jones Industrial Average were largely unchanged as investors weighed evidence of the further slowdown in China's economy and the uncertainty surrounding Brexit, as well as disappointing corporate results across Europe.

In the U.S., American Express rose 1.9% in premarket trading after its third-quarter earnings beat forecasts. Shares in Coca-Cola jumped 2.5% following higher sales posted by the beverage giant. Intuitive Surgical was up 3.3% in after-hours trading after the company beat Wall Street forecasts for sales and profit.

Later in the day, investors might get clues on potential U.S. central-bank activity when Federal Reserve officials, including Robert Kaplan and Richard Clarida, make speeches.

In the U.K., the FTSE 250 equity index ticked 0.3% higher and the pound wavered between gains and losses against the U.S. dollar. Investors are watching developments closely before U.K. lawmakers vote Saturday on a draft Brexit agreement struck with the European Union. Prime Minister Boris Johnson is trying to muster enough support for the deal in the U.K. Parliament.

British lawmakers' support for the deal would provide a short-term boost to the pound and European equities, but wouldn't eliminate deeper concerns, said Seema Shah, senior investment strategist at Principal Global Investors. "You may have lifted the uncertainty, but you still have to deal with Brexit," she said.

French auto maker Renault was the biggest loser in Europe, declining 12.1% 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 7.9% after it lowered expectations for its like-for-like sales growth in 2019.

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

 

(END) Dow Jones Newswires

October 18, 2019 09:16 ET (13:16 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.


Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.


NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.