China beats the forecasts with a strong growth of 6.9%!!
China’s second-quarter growth figures were higher than the early forecast due to strong manufacturing activity and an increase in the private consumption, but investors are warn that the second half will not be so optimistic.
China’s economy grew in the second quarter at an annual rate of 6.9%, the same rate as in the first quarter, this compares to analysts’ forecasts for a 6.8% growth.
Compared to the first quarter, China’s economy grew by 1.7%, according to the forecasts.
A rise in retail sales and the industrial output also helped offset the relative weakness in the country’s stock market caused by speculation that financial regulation will worsen.
The output of factories in China grew by 7.6% in June from the same period last year, the highest growth rate in three months.
The Wall Street trading week will open at the background of the continued reporting season and interest rate decisions by two of the world’s leading central banks, the Bank of Japan and the European Central Bank.
The Bank of Japan is expected to publish optimistic forecasts for Japan’s economy on the back of steady export data, rising domestic consumption and a weaker Japanese yen.
The ECB is expected to leave the interest rate unchanged.
The trading on Wall Street last week ended with a rise, as the Dow Jones and the S&P 500 broke records.
The Dow Jones Industrial Average rose by 1% and close at 21,637 points.
The S&P 500 rose by 1.4% and reached 2,459 points.
The NASDAQ rose by 2.6% in a week’s summary, it was his best week in 2017.
In addition, on Friday, two macro data were published in the US that may affect the Federal Reserve’s policy on future interest rate decisions.
The June CPI remained unchanged and the retail sales in June fell by 0.1%, indicating that the slowdown in US inflation is not temporary As Federal Reserve officials estimate.
Therefore, the Federal Reserve may not raise the interest rates this year as previously announced.