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Chinese economic data burden on the financial markets

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The today data released for the growth of Chinese economy show once again the cooling down of the Chinese economy. The international stock markets are worried about continued decline in China's economic growth. The Euro Stoxx 50 fell 0.9 percent and the German DAX lost around 1.5 percent. Also, the Australian Dollar fell by 0.9 percent to date, since China is a major trading partner of Australia.

Decline in Chinese exports higher than expected

After China's exports already declined four times in a row, analysts also for the figures released today forecasted a decrease of 5 percent. With an actual decline of 6.8%, after 6.9 percent last year, it appears that the pressure on the Chinese economy is virtually unchanged high. Also the imports declining for 13 months in a row already., but with a decline of 8.7 percent, after 18.8 percent in the previous year, the decline has weakened somewhat. In forecasts a decline of 12.6 percent was expected. The figures are also seen in the Chinese trade balance, which is with 54.1 billion US dollars significantly below the expected 63.3 billion. After a growth of 7.3 percent last year, the Chinese government aims for the current year still a growth by 7 percent, which is far from the growth rates of previous years with the double digits.

Stock markets react nervously

The international stock markets react nervously to the lack of improvement of China's economic growth. China represents for many economies one of the most important markets. The continuing weak growth in China threatens to affect the balance sheets, and the indexes on the international markets react today with losses. The Chinese leading index fell by about 1.9 percent already, the German DAX shows a deficit of 1.6 percent and the Euro Stoxx 50 fell by 1.3 percent. Also the Australian dollar reacted to the Chinese economic data with losses. China is one of the major trading partners and markets for the Australian economy. Against the US dollar the AUD lost currently 0,61 percent a, at a price of 0.7224 US dollars.

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