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☆ China growth concerns weigh on European shares at open
▼ + stars: | 2023-07-05 | by ( ) www.reuters.com time to read: +1 min

[1/2] The logo of LVMH Moet Hennessy Louis Vuitton is seen during the company's shareholders meeting in Paris, France, April 20, 2023. REUTERS/Gonzalo Fuentes/File Photo/File PhotoJuly 5 (Reuters) - European shares fell on Wednesday as fresh data pointing to China's faltering economic recovery soured investor sentiment, which has been under pressure from uncertainty about future monetary policy steps by major central banks. The pan-European STOXX 600 index (.STOXX) was down 0.4% by 7:02 GMT, following a quiet session on Tuesday when the U.S. markets were closed for Independence Day. Miners (.SXPP) fell 1.0% and were the biggest sectoral decliners as concerns around weak demand from top consumer China, as well as slowing growth in other major economies, hurt metal prices. Reporting by Amruta Khandekar; Editing by Dhanya Ann ThoppilOur Standards: The Thomson Reuters Trust Principles.

Persons: LVMH Moet Hennessy Louis Vuitton, Gonzalo Fuentes, Pernod Ricard, Hermes, Amruta Khandekar, Dhanya Ann Thoppil Organizations: REUTERS, Independence, Thomson Locations: Paris, France, U.S, China

In Asia, while factory activity expanded marginally in China, it contracted in Japan and South Korea as Asia's economic recovery struggled to maintain momentum. REUTERS/Siyi LiuChina's Caixin/S&P Global manufacturing PMI eased to 50.5 in June from 50.9 in May, the private survey showed. The figure, combined with Friday's official survey that showed factory activity extending declines, adds to evidence the world's No. South Korea's PMI fell to 47.8 in June, extending its downturn to a record 12th consecutive month on weak demand in Asia and Europe. Factory activity also contracted in Taiwan, Vietnam and Malaysia, the PMI surveys showed.

Persons: Rory Fennessy, lockdowns, Toru Nishihama, Siyi Liu China's, Jonathan Cable, Sam Holmes, David Evans Organizations: PMI, European Central Bank, Oxford Economics, P, Dai, Research, REUTERS, P Global, Reuters, Jibun, of, International Monetary Fund, Thomson Locations: Japan, South Korea, China, TOKYO, Europe, Britain, Asia, United States, European, U.S, Dezhou, Shandong province, South, Taiwan, Vietnam, Malaysia, of Japan's

☆ Asia's factory output slumps as weak China demand weighs
▼ + stars: | 2023-07-03 | by ( Leika Kihara | ) www.reuters.com time to read: +3 min

While manufacturing activity expanded marginally in China, it contracted in powerhouses Japan and South Korea as Asia's fragile economic recovery struggled to maintain momentum. New orders from overseas customers decreased in June at the fastest rate in four months reflecting feeble demand from China, the Japan PMI survey showed. Factory activity also contracted in Taiwan, Vietnam and Malaysia, the PMI surveys showed. Asia's economy is heavily reliant on the strength of China's economy, which saw growth rebound in the first quarter but subsequently fell short of expectations. The fate of Asia's economy, including China's, will have a huge impact on the global economy with aggressive monetary tightening to curb inflation likely to weigh on U.S. and European growth.

Persons: Liu, lockdowns, Toru Nishihama, Leika Kihara, Sam Holmes Organizations: REUTERS, PMI, Dai, Research, P Global, Reuters, Jibun, Japan PMI, International Monetary Fund, Thomson Locations: Dezhou, Shandong province, China, Japan, South Korea, TOKYO, Asia, U.S, Europe, Taiwan, Vietnam, Malaysia

☆ China's previous monetary stimulus 'just isn't working,' a private survey shows
▼ + stars: | 2023-06-30 | by ( Clement Tan | ) www.cnbc.com time to read: +3 min

"For months, analysts have pumped the idea that Beijing has little choice but big-bang monetary easing," said Leland Miller, chief executive of China Beige Book. Shehzad Qazi Managing director, China Beige BookAs the report pointed out, "We already have monetary stimulus, it just isn't working." Major Wall Street banks — from Goldman Sachs and Bank of America to UBS and Nomura — recently cut their China growth projections. China Beige Book's survey involved 4,604 respondents in China across two periods: in mid-April, and from mid-May to mid-June. Derek Scissors Chief economist, China Beige Book

Persons: Leland Miller, it's, Shehzad Qazi, Goldman Sachs, Premier Li Qiang, Derek Scissors Organizations: Getty, People's Bank of China, China, Bank of America, UBS, Nomura, realtors, Premier Locations: China, Beijing, U.S

☆ China's Meituan to buy artificial intelligence firm Light Year from co-founder
▼ + stars: | 2023-06-29 | by ( ) www.reuters.com time to read: +1 min

June 29 (Reuters) - Chinese food delivery giant Meituan (3690.HK) said on Thursday that it is acquiring artificial intelligence (AI) company Light Year from its co-founder and former director Wang Huiwen, in a bid to develop its own generative AI. The deal comes at a time when AI has captivated investor interest across the globe, prompting a flurry of investments or acquisitions by businesses in a rush to develop generative AI like ChatGPT. The deal allows Meituan, in which online advertising giant Tencent (0700.HK) holds an 18.7% stake, to strengthen its position in the AI landscape of China. Meituan will control 100% of Light Year after completion of the deal. Reporting by Navya Mittal and John Biju in Bengaluru; Editing by Shailesh KuberOur Standards: The Thomson Reuters Trust Principles.

Persons: Wang Huiwen, HongShan, Meituan, Wang, Navya Mittal, John Biju, Shailesh Organizations: HK, Sequoia Capital China Growth, Thomson Locations: China, Bengaluru

☆ Oil pares gains as rate hike fears offset US inventory drop
▼ + stars: | 2023-06-28 | by ( Alex Lawler | ) www.reuters.com time to read: +2 min

Benchmark Brent crude prices are down more than 15% this year as rising interest rates hit investor appetite, while China's economic recovery has faltered after several months of softer-than-expected consumption and other data. "For now, the market remains stuck with demand concerns weighing," said Ole Hansen, head of commodity strategy at Saxo Bank. "Overall, the commodity sector, including crude oil, is suffering from risk adversity amid China growth worries and U.S. data strength pointing to higher rates," he said. The Energy Information Administration's official supply report is due out at 1430 GMT. Higher interest rates can weigh on economic activity and oil demand.

Persons: Brent, Ole Hansen, Oil, Christine Lagarde, Tamas Varga, Mohi Narayan, Jason Neely, David Evans Organizations: Oil, Brent, U.S, West Texas, Saxo Bank, American Petroleum Institute, Energy, European Central Bank, ECB, PVM, Saudi, Thomson Locations: contango, China

☆ China's industrial profits tumble, deepening economic gloom
▼ + stars: | 2023-06-28 | by ( ) www.reuters.com time to read: +3 min

BEIJING, June 28 (Reuters) - Annual profits at China's industrial firms extended a double-digit decline in the first five months as softening demand squeezed margins, reinforcing hopes of more policy support to bolster a stuttering post-COVID economic recovery. "The still slow recovery in industrial profits pointed to sustained difficulties facing business operations," said Wu Chaoming, deputy director of the Chasing International Economic Institute. Wu said the corporate struggles strengthen the case for more policy measures to help companies. "As the external environment becomes increasingly complicated and severe, domestic demand still appears to be insufficient, weighing on further recovery in industrial profits," said NBS statistician Sun Xiao in an accompanying statement, noting that the foundation for a revival in industrial profits is still not solid. Industrial profit numbers cover firms with annual revenues of at least 20 million yuan ($2.77 million) from their main operations.

Persons: Wu Chaoming, Wu, Sun Xiao, Goldman Sachs, Li Qiang, Li, Qiaoyi Li, Ryan Woo, Shri Navaratnam Organizations: National Bureau of Statistics, Economic Institute, P Global, Summer, Thomson Locations: BEIJING, China, Tianjin

☆ China's tumbling industrial profits deepens economic gloom
▼ + stars: | 2023-06-28 | by ( ) www.reuters.com time to read: +3 min

☆ Oil extends declines on China growth woes, firmer dollar
▼ + stars: | 2023-06-21 | by ( ) www.cnbc.com time to read: +2 min

Oil prices weakened on Wednesday, extending falls to a third straight day, as the dollar strengthened on a U.S. housing market recovery while fears persisted that monetary stimulus may not be enough to revive growth in China. A firmer dollar weighs on oil demand as it makes the commodity more expensive for buyers holding other currencies. The market remains concerned about a faltering recovery in China, the world's top oil importer. "Investors remained impatient with China's efforts to boost economic growth," ANZ Research said in a client note on Wednesday. Five analysts polled by Reuters estimated on average that crude stockpiles fell by about 400,000 barrels in the week to June 16.

Persons: Brent, homebuilding, Jerome Powell, Powell Organizations: Montebello Oil, . West Texas, Federal, Investors, ANZ Research, U.S . Federal, Federal Reserve, Market Committee, Traders, American Petroleum Institute, Energy, Administration, Reuters Locations: Montebello, Montebello , California, U.S, China, Washington

☆ Morning Bid: US housing rebound, China prime cuts
▼ + stars: | 2023-06-20 | by ( ) www.reuters.com time to read: +4 min

The main macroeconomic news overnight was a rather underwhelming Chinese rate cut that seemed to disappoint the local stock and currency markets, both of which fell. The People's Bank of China cut two benchmark lending rates - its one-year and five-year loan prime rates - by 10 basis points each. With Goldman Sachs on Monday the latest to cut China growth forecasts for this year and next, nerves about the economy's trajectory are rising again. The big U.S. data input this week is from the housing sector, where signs of some recovery are reinforcing 'soft landing' hopes for the wider economy. On Monday, the NAHB's house market sentiment index rose in June to its highest in almost a year and far above forecasts.

Persons: Mike Dolan, Goldman Sachs, Xi Jinping, Antony Blinken, Joe Biden, what's, BOE, Jerome Powell, Michael Barr, John Williams, St Louis, James Bullard, Narendra Modi, Susan Fenton Organizations: Nasdaq, People's Bank of China, Washington, China's, of, Global, Bank of, Federal Reserve, FedEx, Philadelphia Fed, Federal, New York Fed, St, St Louis Fed, Indian, United States Reuters Graphics Reuters, Thomson Locations: U.S, China, Xi, Europe, Britain, Switzerland, Norway, Turkey, Bank, Bank of England, United

☆ Gulf bourses end mixed on China growth concerns
▼ + stars: | 2023-06-20 | by ( Md Manzer Hussain | ) www.reuters.com time to read: +2 min

China on Tuesday cut two benchmark lending rates by 10 basis points each. Dubai's benchmark index (.DFMGI) extended losses to a second straight session, ending 0.3% lower. Saudi Arabia's benchmark index (.TASI) inched up 0.1%, with Dr Sulaiman Al-Habib Medical Services (4013.SE) rising 0.7% and Company for Cooperative Insurance (8010.SE) climbing 2.3%. "Oil prices remained volatile as Chinese economic recovery continues to fuel concerns among traders, affecting oil demand expectations," said Daniel Takieddine, CEO MENA at BDSwiss. Outside the Gulf, Egypt's blue-chip index (.EGX30) fell 0.4%, extending previous session losses with financial and materials sectors trading in the red.

Persons: Dr Sulaiman Al, Daniel Takieddine, Brent, Md Manzer Hussain, Eileen Soreng Organizations: Emaar, Emirates Central Cooling Systems, Emirates, Qatar National Bank, Ezdan, Habib Medical Services, Company, Cooperative Insurance, Jamjoom Pharmaceuticals, Alpha, Commercial International Bank, Ezz, Thomson Locations: Dubai, Qatar, Saudi, Abu Dhabi, China, Beijing, Alpha Dhabi, Burjeel

☆ Oil falls on China growth uncertainties
▼ + stars: | 2023-06-19 | by ( Ahmad Ghaddar | ) www.reuters.com time to read: +2 min

Companies NK Rosneft' PAO FollowLONDON, June 19 (Reuters) - Oil prices fell on Monday as questions over China's economy outweighed OPEC+ output cuts and the seventh straight drop in the number of oil and gas rigs operating in the United States. Brent crude fell 17 cents, or 0.2%, to $76.44 a barrel by 0944 GMT while U.S. West Texas Intermediate (WTI) crude lost 31 cents, or 0.4%, to $71.47. "(China's) economy is navigating through powerful headwinds," said PVM oil analyst Tamas Varga. The oil and gas rig count, an early indicator of future output, fell by eight to 687 in the week to June 16 for the lowest total since April 2022. , , . Iran's crude exports and oil output have hit record highs in 2023 despite U.S. sanctions, according to consultants, shipping data and a source close to the matter, adding to global supply when other producers are limiting output.

Persons: Brent, Tamas Varga, Ahmad Ghaddar, Katya Golubkova, Emily Chow, David Goodman Organizations: NK Rosneft, West Texas, Reuters, of, Petroleum, Thomson Locations: United States, China, U.S, Russia, Saudi Arabia, Tokyo, Singapore

☆ Goldman Sachs cuts China growth forecast as property slowdown bites
▼ + stars: | 2023-06-19 | by ( ) www.reuters.com time to read: +1 min

SINGAPORE, June 19 (Reuters) - Goldman Sachs (GS.N) analysts have cut forecasts for China's economic growth, citing persistently weak confidence and the cloud over the property market as stronger-than-expected headwinds. The U.S. investment bank lowered its full-year real gross domestic product growth forecast for the world's second biggest economy from 6% to 5.4%, according to a note published late on Sunday. It also lowered its 2024 growth forecast from 4.6% to 4.5%. The cut follows similar moves by global peers, though still leaves Goldman among the most optimistic, as data shows China's post-pandemic recovery faltering. "We judge that growth headwinds are likely persistent while policymakers are constrained by economic and political considerations in delivering meaningful stimulus."

Persons: Goldman Sachs, Goldman, Hui Shan, Tom Westbrook, Simon Cameron, Moore Organizations: Thomson Locations: SINGAPORE, U.S, China

A number of major banks have cut their 2023 gross domestic product growth forecasts for China after May data last week showed the post-COVID recovery in the world's second-largest economy was faltering. The oil and gas rig count, an early indicator of future output, fell by 8 to 687 in the week to June 16, lowest since April 2022. , , . Earlier this month, OPEC+ had agreed on a new oil output deal. The group's biggest producer Saudi Arabia also pledged to make a deep cut to its output in July. Reporting by Katya Golubkova in Tokyo and Emily Chow in Singapore; Editing by Tom HogueOur Standards: The Thomson Reuters Trust Principles.

Persons: Brent, Tina Teng, PBOC, Edward Moya, Moya, Igor Sechin, Sechin, Katya Golubkova, Emily Chow, Tom Hogue Organizations: NK Rosneft, U.S, West Texas, People's Bank of China's, CMC Markets, Reuters, of, Petroleum, Thomson Locations: TOKYO, United States, China, U.S, Russia, OPEC, Saudi Arabia, Tokyo, Singapore

☆ China's industrial profits tumble 18% in April as demand sputters
▼ + stars: | 2023-05-27 | by ( ) www.cnbc.com time to read: +4 min

Profits at China's industrial firms slumped in the first four months of 2023, official data showed on Saturday, as companies continued to struggle with margin pressures and soft demand amid a faltering economic recovery. In April alone, industrial firms posted a 18.2% drop in profit year-on-year, according to the NBS, which only occasionally gives monthly figures. Chinese companies are struggling with both weak demand at home and softening demand in the country's major export markets. Earlier this month, Premier Li Qiang vowed more targeted measures to expand domestic demand and stabilize external demand in an effort to promote a sustained economic rebound. Industrial profit numbers cover firms with annual revenues of at least 20 million yuan ($2.89 million) from their main operations.

☆ China industrial profits tumble 18% in April as demand sputters
▼ + stars: | 2023-05-27 | by ( ) www.reuters.com time to read: +4 min

BEIJING, May 27 (Reuters) - Profits at China's industrial firms slumped in the first four months of 2023, official data showed on Saturday, as companies continued to struggle with margin pressures and soft demand amid a faltering economic recovery. In April alone, industrial firms posted a 18.2% drop in profit year-on-year, according to the NBS, which only occasionally gives monthly figures. Chinese companies are struggling with both weak demand at home and softening demand in the country's major export markets. Earlier this month, Premier Li Qiang vowed more targeted measures to expand domestic demand and stabilise external demand in an effort to promote a sustained economic rebound. Industrial profit numbers cover firms with annual revenues of at least 20 million yuan ($2.89 million) from their main operations.

☆ JPMorgan says stocks' risk/reward is 'poor,' recommends adding to cash and gold holdings
▼ + stars: | 2023-05-23 | by ( Sarah Min | ) www.cnbc.com time to read: +2 min

It's time for investors to build out their cash and gold positions, said JPMorgan chief strategist Marko Kolanovic. The S & P 500 is standing near year-to-date highs, after notching its best week since March last week on hopes of a debt ceiling resolution. Given this, the chief strategist recommends investors take a more defensive stance in their portfolios, saying he favors cash and gold over energy, equities and credit. Meanwhile, in commodities, he added to his gold allocation by cutting two percentage points from his energy holdings, according to the note. "Within commodities, we rotate from energy (given recession risks and a potentially fading China growth impulse), to gold following its recent sell-off (on its safe-haven demand and as a debt ceiling hedge)," he added.

Persons: Marko Kolanovic, Stocks, Kolanovic, they're Organizations: JPMorgan, Nasdaq, Federal Reserve Locations: China

☆ Asian shares mixed as China growth worries crimp U.S. debt ceiling optimism
▼ + stars: | 2023-05-19 | by ( Ankur Banerjee | ) www.reuters.com time to read: +3 min

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) eased 0.20% but was set to eke out a gain of 0.19% for the week. Data in the week underscored that China's economy lost momentum at the beginning of the second quarter, stoking worries over the wobbly post-COVID-19 recovery. Investor attention has been firmly on the negotiations over U.S. debt ceiling and increasing hopes that a deal could be reached sent U.S. shares higher overnight . Hawkish rhetoric from Fed speakers continued with Dallas Fed President Lorie Logan and St. Louis Fed President James Bullard saying inflation was not cooling fast enough to allow the Fed to pause its interest-rate hike campaign. U.S. crude fell 0.14% to $71.76 per barrel and Brent was at $75.78, down 0.11% on the day.

☆ Goldman Sachs shares exactly how to invest right now to profit this year — even as uncertainty and a banking crisis hurt economic growth
▼ + stars: | 2023-04-26 | by ( James Faris | ) www.businessinsider.com time to read: +5 min

But that unusual calm in markets may be masking serious concerns about economic growth, according to David Kostin, the chief US equity strategist at Goldman Sachs. Goldman Sachs"Mixed economic data and uncertainty around banking stress have led the equity market to downgrade its pricing of the US economic growth outlook in recent weeks," Kostin wrote. Goldman Sachs' GDP estimate (the blue-gray columns) is higher than that of the consensus (the black dots). Another sector Goldman Sachs is bullish on is energy, even though it's economically sensitive. Goldman Sachs is also neutral on the following sectors and industries: software & services, financials, consumer discretionary (excluding autos & durables), utilities, real estate, and consumer durables & apparel.

☆ Goldman thinks the trade right now is on China's economy and gives 2 U.S. stocks to play it
▼ + stars: | 2023-04-24 | by ( Yun Li | ) www.cnbc.com time to read: +1 min

The rebound in China's economy creates an opportunity for U.S. equity investors who can capture that strength by picking mining stocks, according to Goldman Sachs. "We recommend investors own mining stocks, which are levered to China growth through rising metals prices." Metals and mining stocks typically mirror the performance of the index, Goldman said. The firm said mining stocks in general are relatively cheap right now, trading at a 20% discount to the S & P 500. The SPDR S & P Metals & Mining ETF tracks the S & P Metals and Mining Select Industry Index, while the iShares MSCI Global Metals & Mining Producers ETF follows select global metals and mining producers, excluding gold and silver.

☆ China's economy grew 4.5% in the first quarter, the fastest pace in a year
▼ + stars: | 2023-04-18 | by ( Jihye Lee | ) www.cnbc.com time to read: +3 min

The economy grew 3% in 2022, less than Beijing's official target of around 5.5% set in March last year. For 2023, the government last month set a modest growth target of "around 5%." On pace to exceed targetGoldman Sachs said China's first-quarter growth of 4.5% supports the firm's full-year outlook for the economy to grow 6%. "Today's data are in line with our full-year bullish view for China growth," Goldman Sachs' chief China economist Hui Shan told CNBC. We keep the full-year GDP forecast at 5% as external demand should be a concern for the year," Pang wrote.

☆ Marketmind: Dollar skids, China revs
▼ + stars: | 2023-04-13 | by ( ) www.reuters.com time to read: +4 min

The dollar's DXY index - the Swiss franc hit its strongest level in more than two years. Taking in all the information, futures markets still show a near 75% chance of another quarter point rate rise to the 5.0-5.25% range in May, but more than 60 basis points of cuts from there to yearend. Two-year Treasury yields were stuck at 4%, with producer price inflation and weekly jobless up next on Thursday's data calendar. European markets were further pepped by reports the European Central Bank was minded to downsize its rate hikes to a quarter point in May after six successive half point moves. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Wall St pares gains, Treasury yields turn higher ahead of Powell testimony
▼ + stars: | 2023-03-06 | by ( Stephen Culp | ) www.reuters.com time to read: +4 min

[1/4] Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., February 27, 2023. All three major U.S. stock indexes were modestly higher, although well off session highs, Treasury yields reversed an earlier dip and the dollar pared its losses in afternoon trading. Emerging market stocks rose 0.57%. Benchmark U.S. Treasury yields were last nominally higher on the day, bouncing back from initial decline. The dollar lost ground against a basket of world currencies ahead of Powell's testimony and the jobs data.

☆ Wall Street gains, Treasury yields soften ahead of Powell testimony
▼ + stars: | 2023-03-06 | by ( Stephen Culp | ) www.reuters.com time to read: +4 min

[1/4] The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, March 3, 2023. All three major U.S. stock indexes gained ground on Monday, appearing to extend last week's rally, with lower Treasury yields boosting interest rate-sensitive megacap stocks. European shares reversed earlier gains and were last essentially unchanged after modest China growth estimates suggested a possible dampening of demand for European goods. Emerging market stocks rose 0.64%. Benchmark U.S. Treasury yields continued to ease as dampening demand supported hopes that the Fed is approaching the end of its rate-hike phase.

Hong Kong CNN —China has set an official economic growth target of “around 5%” for 2023, as it seeks to revive the world’s second largest economy after a year of tepid growth because of pandemic measures. The new figure was released Sunday alongside the opening of the annual gathering of the National People’s Congress (NPC), the country’s rubber-stamp legislature, in a government work report. Chinese Premier Li Keqiang speaks during the opening session of China's National People's Congress (NPC) at the Great Hall of the People in Beijing, Sunday, March 5. Ng Han Guan/APMoody’s Investors Service has since raised its China growth forecast to 5% for both 2023 and 2024, up from 4% previously, citing a stronger than expected rebound in the short term. Global growth will likely slow from 3.4% in 2022 to 2.9% in 2023.

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