Data suggests the Chinese economy slowed in July, as Donald Trump’s trade war began to bite at the second biggest economy in the world.
Figures coming out of Beijing last night showed that Chinese industrial production rose at the slowest rate since November and expanded by 5.7% compared with the same point last year, worse than an expected 6%.
Meanwhile, Chinese retail sales grew by 3.7% year on year in July, its slowest pace so far this year and down from 4.8% the previous month.
Yuhan Zhang, the principal economist at the Conference Board’s China Center, said: "Firms may be running on existing capacity rather than building new plants ... The July industrial value-add breakdown tells a more nuanced story than the weak fixed asset investment headline."
He pointed to China’s automobile manufacturing, railway, shipbuilding, aerospace and other transport equipment industries as “outliers (that) indicate policy-driven, high-tech and strategic sectors are still attracting substantial capital.”
The Chinese CSI 300 stock index rose 0.8% after the release of the economic data, as it fed speculation that Beijing could introduce fresh stimulus in the market.
Meanwhile in the UK, the FTSE 100 blue chip share index is set to end the week at a new record high, led by gains in the finance and defence sectors.
The defence sector has been one of the best performers in London’s stock market because of a wave of rearmament across much of Europe in the wake of the war in Ukraine.
All eyes will be on Alaska later today, when Vladimir Putin is set to meet Trump. The US president has said he believes the Russian leader is ready to make a deal on the Ukraine war.
The agenda
• 8.00pm BST: Donald Trump and Vladimir Putin meet in Alaska
