China data soothes global markets, Wall St. braces for new earnings season

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China data soothes global markets, Wall St. braces for new earnings season

On Monday, the 15th of July 2019, an upbeat economic resonance out of China which came out of the blue and surprised analysts and economists all over the world, had lifted the global shares to an 18-month-high, while Wall St.

had been bracing for a new earnings season, what analysts were predicting to be a flurry of choppy sessions amid garrulous trade relationship with China alongside higher tariff and a Huawei ban, which would likely to drag chipmakers’ and tech conglomerates’ earnings downward.

Following release of a mixed bag of China data, which had witnessed a GDP growth slowed down to 27-year-low figure, while factory data and retail sales remained robust, indicating a decent cash flow streaming through its domestic economy, financial markets in mainland China and Hong Kong wrapped up the in the greens, but, gains were capped by concerns that a robust factory and retail sales data might prompt the policymakers to deemphasize on policy easing measures.

Nonetheless, referring to growing discontent among investors, a CMC Markets analyst, David Madden said, “It is no surprise that China is slowing down and if you look at the other components of the data like retail sales and industrial production, they are looking a little bit better than expected.

Traders seem to be content to maintain a bit of optimism”. Quoting statistics, in Asia, Japan’s Nikkei had wrapped up the day 0.20 percent higher, while Hang Seng was 0.29 percent higher at Monday’s (July 15th) market wind down and Bombay Stock Exchange ended up the day up by 0.41 percent.

Besides, in Europe, over optimism of an upbeat China data, London’s FTSE 100 had rounded off the day 0.45 percent higher and Germany’s DAX closed down 0.61 percent up, while French CAC 40 was trading 0.26 percent during preparation of the report, at late European trading hours.

Meanwhile, Wall St. was expected to open higher, as investors across the globe had been cheering over an unprecedented, yet immensely soothing China data.