Oil prices tumble as China economy stutters
LONDON: Oil prices slumped nearly five percent Monday on data showing China’s economic recovery stuttering under Covid-19 restrictions and a slumping property sector. Stock markets mostly steadied and the dollar traded mixed as investors welcome signs of cooling US inflation, which nevertheless remains at the highest level in decades. “It’s been an underwhelming start to the week in financial markets with the eternal optimism of investors clashing with the reality of Chinese economic data,” noted Oanda senior market analyst Craig Erlam. China’s central bank slashed key interest rates in a surprise move Monday as a raft of data showed weakness in the world’s second-largest economy. The figures showed China’s industrial production and retail sales growth for July came in lower than expected. Industrial production was up 3.8 percent year-on-year, but down from 3.9 percent in June and well below analysts’ forecasts. “The risk of stagflation in the world economy is rising, and the foundation for domestic economic recovery is not yet solid,” China’s National Bureau of Statistics warned.
Oil prices tumble as China economy stutters
LONDON: Oil prices slumped nearly five percent Monday on data showing China’s economic recovery stuttering under Covid-19 restrictions and a slumping property sector. Stock markets mostly steadied and the dollar traded mixed as investors welcome signs of cooling US inflation, which nevertheless remains at the highest level in decades. “It’s been an underwhelming start to the week in financial markets with the eternal optimism of investors clashing with the reality of Chinese economic data,” noted Oanda senior market analyst Craig Erlam. China’s central bank slashed key interest rates in a surprise move Monday as a raft of data showed weakness in the world’s second-largest economy. The figures showed China’s industrial production and retail sales growth for July came in lower than expected. Industrial production was up 3.8 percent year-on-year, but down from 3.9 percent in June and well below analysts’ forecasts. “The risk of stagflation in the world economy is rising, and the foundation for domestic economic recovery is not yet solid,” China’s National Bureau of Statistics warned.