European update – Markets shrug off Chinese data

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Chinese economic reports encouraging

It’s been a sluggish start to the trading week, with there being no lack of market headlines but rather little movement on the back of it.

We’re seeing small gains in Europe early in the day and US futures are posting marginal gains, continuing the trend we’ve been seeing this week.

Source – Thomson Reuters Eikon

Take this morning for example. We were treated to a selection of expectation-beating economic reports from the world’s second largest economy and investors simply shrugged it off like it does really matter. Except it very much does and a slowdown in China – which remains locked in a trade war with the US – has contributed to expectations of slower global growth this year.

I’m not one to get carried away with one batch of encouraging data and the longer term trend is very much against China, but these numbers may at least suggest all is not as bad as feared. And if a trade deal is struck in the coming months with the US, as many expect, perhaps things could even improve.

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Craig Erlam

Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years’ experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.

Craig Erlam

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