Markets subdued after Japan's GDP slumps and US-China trade talks postponed – business live

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7.33am BST

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Global markets are subdued this morning, after Japan became the latest country to suffer a historic economic slump due to the Covid-19 pandemic. And with factory output weaker than hoped in June, the recovery could be slower than hoped.

some snippets from @TheEconomist on Japan’s 2nd-quarter GDP data. pic.twitter.com/HRWMLWTJ3R

Japan Q2 GDP Posts Biggest Contraction Since Comparable Data Became Available In 1980 – Govt

Private consumption, which accounts for more than half of Japan’s economy, fell 8.2% for the quarter, bigger than analysts’ forecast of a 7.1% drop. Capital expenditure declined 1.5% in the second quarter, less than a median market forecast for a 4.2% fall.

External demand, or exports minus imports, shaved 3.0% off GDP, as the pandemic dampened global demand, the data showed.

Global report: Japan hit by biggest GDP fall in 40 years, Australia suffers deadliest day https://t.co/wptTyYc2Rn

European Opening Calls:#FTSE 6094 +0.06%#DAX 12893 -0.06%#CAC 4968 +0.09%#AEX 561 -0.06%#MIB 20045 +0.09%#IBEX 7173 +0.26%#OMX 1753 -0.04%#STOXX 3305 +0.01%#IGOpeningCall

Asia markets have started the week on a mixed note with the latest Japanese Q2 GDP numbers showing that the world’s third biggest economy contracted by -7.8%, with private consumption sliding -8.2%, both by more than expected. In a development that is even more worrying is that industrial production in June only recovered a modest 1.9% significantly below expectations of 2.7%, and pointing to a weak recovery towards the end of Q2, as we look towards Q3.

As such equity markets here in Europe also look set to open on a mixed note with no clear sense of direction.

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