SHANGHAI, Sept. 15 (SMM) – Economic figures from China missed forecast and Chinese A-shares posted a slip on Monday, reigniting worries about a slowdown in China’s economy. Commodity prices were thus depressed.
Chinese National Bureau of Statistics (NBS) data showed that the above-scale industrial added value recorded an accelerated growth of 6.1% in August as compared to that for the year-ago period, missing the market estimates of rising 6.5%. Besides, Fixed-asset investment grew 10.9% year on year to RMB 33.9 trillion (USD 5.32 trillion) in the first eight months of the year, official data showed. Growth retreated from the 11.2% registered in the first seven months. China’s funds outstanding for foreign exchange fell unexpectedly in August, the largest single-month drop.
Overseas economists expressed that China will not obtain the goal of 7% growth in GDP in 2015. As such, the Shanghai Composite Index fell 2.67% on Monday, versus over 7% for Growth Enterprise Market (GEM) Index. Over 1,500 stocks slipped to daily limit in Shanghai and Shenzhen stock market with trading values less than RMB 700 billion.
In eurozone, UniCredit SpA in Italy was considering laying off 10,000 workers, 7% of total workers. Deutsche Bank plans a cut of 23,000 workers, almost 25% of total workers. Market sentiment thus stayed anemic.
A growth of 0.07% in US dollar index weighed down base metal prices. US crude oil prices dropped 1.59% as the OPEC planed no cut in crude oil output. US stocks slid across the board.