Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

European Stock Futures Lower; China Data Points to Slowdown

Stock MarketsAug 16, 2021 02:04AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Peter Nurse 

Investing.com - European stock markets are expected to open lower Monday, as a string of weak Chinese economic data releases points to a Covid-induced slowdown at one of the globe’s key growth engines.

At 2:05 AM ET (0605 GMT), the DAX futures contract in Germany traded 0.4% lower, CAC 40 futures in France dropped 0.5% and the FTSE 100 futures contract in the U.K. fell 0.5%.

European markets are set to suffer from the weak sentiment in Asia Monday after data released in China earlier in the day showed industrial production rose 6.4% year-on-year in July, and retail sales grew 8.5% year-on-year in the same month, both lower than expected. 

This slowdown is the result of the second largest economy in the world tightening mobility restrictions to combat the spread of the highly-transmissible delta variant of the Covid-19 virus.

In neighboring Japan, the GDP grew 0.3% quarter-on-quarter and 1.3% year-on-year in the second quarter, avoiding a double-dip recession despite continued restrictions to contain the coronavirus. 

Those restrictions are yet to have their desired effect. The Japanese Sankei newspaper reported Monday that Prime Minister Yoshihide Suga is poised to expand and extend for about another two weeks a virus state of emergency in Tokyo.

The collapse of the Afghan government after Taliban insurgents took over Kabul, the capital, has added to the negative sentiment.

Back in Europe, there is little in the way of tier one economic data due for release Monday. 

In the corporate sector, HSBC (LON:HSBA) will likely be in the spotlight after Europe’s largest bank by assets agreed to acquire AXA's (PA:AXAF) insurance assets in Singapore for $575 million as it beefs up its insurance and wealth business.

HSBC said the combined business would be the seventh-largest life insurer and the fourth-largest retail health insurer.

Elsewhere, oil prices fell by over 1% Monday on concerns mobility restrictions in China, the second largest importer of crude in the world, will hit fuel demand.

China's daily crude throughput last month fell to the lowest since May 2020 as independent refiners slashed production, according to data from the National Bureau of Statistics on Monday. That was the first year-on-year decline since March last year when the coronavirus hit hard.

By 2:05 AM ET, U.S. crude futures traded 1.4% lower at $67.27 a barrel, while the Brent contract fell 1.3% to $69.66.

Additionally, gold futures fell 0.2% to $1,773.70/oz, while EUR/USD traded marginally lower at 1.1789.

 

European Stock Futures Lower; China Data Points to Slowdown
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
simone scelsa
simone scelsa Aug 16, 2021 2:50AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If the higher ups expect 0 deaths from Covid before they can lift the restrictions, then we will wait forever. The common flu causes between 300k and ******fatalities each year worldwide. Covid will become endemic and it will compete with the common flu.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email