ETX Capital Daily Market Bite, 13th March 2014: European Markets Lower Amid China, Ukraine Concerns
March 13, 2014 9:34 am
A relief rally for Asian markets overnight helped European equities at the open on Thursday but markets fell shortly after as the continued run of poor China economic data keeps market participants anxious about global growth prospects this year.
China’s data overnight showed slow credit growth denting economic activity — industrial output, retail sales and fixed asset investments all declined — seasonal effects/Lunar new year as well as the country going through an economic transformation distorts the data to a degree, but the slowdown is still far more pronounced than markets expected at the start of the year.
China’s policymakers are unlikely to intervene just yet — comfortable with faltering growth as to them, it’s a symptomatic of an evolving economy but it doesn’t spell good news for China’s neighbours in Asia who are all exposed heavily to the country’s growth prospects.
Tensions in Ukraine continue to haunt markets, denting appetite for big risk. Traders are reluctant to build positions in the face of slowing global growth and geopolitical tensions. Economic calendar in Europe is light with no major notable events lined up. The focus will be on US retail sales and weekly jobless claims.
A relief rally for Asian markets overnight helped European equities at the open on Thursday but markets fell shortly after as the continued run of poor China economic data keeps market participants anxious about global growth prospects this year.
China’s data overnight showed slow credit growth denting economic activity — industrial output, retail sales and fixed asset investments all declined — seasonal effects/Lunar new year as well as the country going through an economic transformation distorts the data to a degree, but the slowdown is still far more pronounced than markets expected at the start of the year.
China’s policymakers are unlikely to intervene just yet — comfortable with faltering growth as to them, it’s a symptomatic of an evolving economy but it doesn’t spell good news for China’s neighbours in Asia who are all exposed heavily to the country’s growth prospects.
Tensions in Ukraine continue to haunt markets, denting appetite for big risk. Traders are reluctant to build positions in the face of slowing global growth and geopolitical tensions. Economic calendar in Europe is light with no major notable events lined up. The focus will be on US retail sales and weekly jobless claims.
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