Markets Shored Up by China's 7.5% Growth Rate

markets shored up by china's 7.5 percent growth rate
APIn this photo taken July 10, 2013, a man walks past the downtown skyline of Shanghai, China.
LONDON (AP) - Relief over China's economic growth rate helped shore up the mood in financial markets Monday ahead of a raft of U.S. corporate earnings and retail sales figures.

The world's second-largest economy grew 7.5 percent from a year earlier in the second quarter. Though the figure is down on the previous quarter's 7.7 percent, there had been fears that it may have fallen below 7 percent in the wake of efforts by the country's monetary authorities to clamp down on risky lending. A sharp drop would hurt companies around the world that have become increasingly reliant on breakneck Chinese growth to boost earnings.

"China's growth rate might still be on a steadily declining path, but investors were happy enough to see it come in line with expectations, growing by 7.5 percent in the second quarter," said Chris Beauchamp, market analyst at IG. "Beijing was keen to emphasise that internal consumption was picking up the slack, and helpfully retail sales rose strongly during June."

Combined with an easing in tensions over Europe's financial crisis and diminishing fears about the Federal Reserve's plans to rein in its monetary stimulus, the figures bode well for markets.

"We could be in for a week of quiet, steady gains for stock markets," he said.

Following a 1 percent rise in the Shanghai Composite Index to 2,059.39, European stock markets have posted solid gains. The FTSE 100 index of leading British shares was up 0.3 percent at 6,565, while Germany's DAX rose 0.1 percent to 8,225. The CAC-40 in France was 0.4 percent higher at 3,872.

Wall Street was poised for a solid opening with Dow futures and the broader S&P 500 futures up 0.2 percent.

How they open could hinge on a run of earnings, notably from Citigroup. June retail sales figures will also be closely monitored an hour before the bell on how they affect the debate over when the Fed will start 'tapering' its monetary stimulus. The median expectation in the markets is that they rose around 0.8 percent during the month.

"Today's retail sales data for June could well feed into the tapering debate if we get an improvement in line with recent consumer confidence numbers which have been much better than expected," said Michael Hewson, senior market analyst at CMC Markets.

For weeks now, the Fed's monetary stance has been the main driver in markets. The Dow and the S&P 500 struck all-time highs last week partly on an indication from the Fed that the monetary stimulus may be in place for longer than expected. At the moment, the Fed is buying around $85 billion of assets in the markets, and that's helped prop up stocks for months.

The dollar has faltered in recent days as expectations of a Fed tightening have eased. It clawed back some ground Monday, with the euro 0.3 percent lower at $1.3033. The dollar was 0.5 percent higher at 98.81 yen.

Earlier in Asia, Hong Kong's Hang Seng added 0.1 percent to 21,303.31 and Sydney's S&P/ASX 200 gained 0.1 percent to 4,981.10. South Korea's Kospi rose 0.3 percent 1,875.16. Japan's financial markets were closed for a public holiday.

Oil prices gave up some recent gains. Benchmark crude for August delivery was down 33 cents at $105.62 a barrel in electronic trading on the New York Mercantile Exchange. The contract gained $1.04 to $105.95 in New York on Friday, driven higher by continuing tensions in Egypt and a sharp drop in U.S. crude stockpiles.

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"Markets Shored Up by China's 7.5% Growth Rate"

I would imagine so since they have been flying high with our 1-3% growth rate, making us 167th in the world behind Cuba, Egypt and Mexico. They will soon have to build a fence on Mexico's side of the border to keep Americans sneaking across the border to get a better life for themselves and their families.

July 15 2013 at 4:47 PM Report abuse rate up rate down Reply

It's a sad and embarrassing day when a Communist countries growth rate is much larger than the ONCE greatest Capitalist Democracy in the world.
Obama should be PROUD!

July 15 2013 at 4:33 PM Report abuse -1 rate up rate down Reply


Another article said it slowed.

July 15 2013 at 4:27 PM Report abuse rate up rate down Reply
Hello Bob

I admit to my mistaken Obama Iraq war vote. I don't know where I came up with that information but it was obviously wrong. However I am very wealthy from good investments and I cannot thank GWB but I can thank the Obama administration. Also, I do want to know when do you actually do any work because you seem to be constantly on various comment boards through out the day. It seems likely that you need to get a life. You seem very self satisfied, that is you and Rosey Palm !

July 15 2013 at 4:19 PM Report abuse +1 rate up rate down Reply
2 replies to Hello Bob's comment

And now, bob thinks that obama, or any president as far as that goes, sets monetary ploicy.

Keep digging bob.

July 15 2013 at 8:40 PM Report abuse rate up rate down Reply

problem is bob, is that you show up on these blogs with the same old tired, false, boring talking points that the left has been bleating for more than four years like it's the first time anyone has seen these same old, tired, false boring talking points. Anyone with a GOOGLE already knows that they are bullshlt, and you end up looking and feeling like you do....right now.

Perhaps you should lay off the leftist kool aid websites and the cable news that has a history of manipulating audio and video...and verify before you post.

July 15 2013 at 9:00 PM Report abuse rate up rate down Reply

I love it when smart people like hello bob down below here say that president hugobama voted no on using our armed forces in Iraq, when president hugobama was IL state senator hugobama in 2003 when th vote was taken.

July 15 2013 at 3:20 PM Report abuse -2 rate up rate down Reply

This is the best news for stocks this summer.

July 15 2013 at 3:09 PM Report abuse rate up rate down Reply



July 15 2013 at 2:57 PM Report abuse -1 rate up rate down Reply
Doug Click

Sure they are growing! Building more vacant cities? Nothing can be Audited so lets say they grew at 9.5%. I feel better now.

July 15 2013 at 1:31 PM Report abuse +1 rate up rate down Reply

Yep it looks like the world economy now revolves around china .Hell even our President is invested in China and maybe that's why he can't get the private sector jobs going.

July 15 2013 at 12:58 PM Report abuse -1 rate up rate down Reply

Keep it up, America...

Keep on buying that cheap crap fom China, so they can keep on getting richer, and more powerful, so our stock market can keep on feeling good, and going up.

America owes it's soul to the Chinese company store.

July 15 2013 at 12:45 PM Report abuse +1 rate up rate down Reply