World stocks slipped and US equity futures were unchanged after China posted its weakest growth rate in 30 years, as Q3 GDP disappointed, printing a below-expectations 6.0%...
… while the dollar was set for its worst week in almost four months having been pummeled by pound and euro Brexit rallies.
As a result of the latest disappointing GDP print, Chinese stocks slumped as large banks and insurers weighed on the gauge, their losses accelerating in afternoon trade as the Shanghai Composite dropped 1.2%, with the CSI 300 Index posting its biggest decline this month led lower by information technology shares. Overall, Asian stocks slipped, snapping a five-day rising streak, with most markets in the region dropping, while India bucked the trend. The Topix dropped 0.1%, dragged by telecommunication giants. Japan’s key consumer prices rose at the slowest clip in more than two years in September, the latest sign of weakening inflation. India’s Sensex climbed 0.8%, set for its best week since May, as quarterly earnings reports added to investor optimism
China’s economy slowed by more than expected in the third quarter, according to a report published Friday by China’s National Bureau of Statistics.
The true growth rate of the Chinese economy can be hard to measure. Official statistics are suspected of often being fudged to meet central government expectations.
The latest economic numbers appear to follow that pattern. China said its economy grew at a 6 percent rate in the third quarter, which happens to be exactly the government’s baseline target for full-year gross domestic product growth.
If accurate, that would be the slowest pace of growth since 1992.
Growth would have slowed by more if not for a reported recovery in industrial production and retail sales in the final month of the quarter. The boost in these sectors coincided with U.S. tariffs and Chinese retaliatory tariffs rising in September, which some China-watchers regard with a high level of skepticism.
Exports down 22% Imports down 8%