Premarket shares: With China's latest GDP data, it is hard to ignore fears of growth
The country's gross domestic product grew by 6% between July and September, reports my CNN Business colleague Laura Han from Hong Kong. This is the weakest quarterly growth since 1992, down from 6.2% last quarter.
"Negotiations in progress may have some positive impact on business [sentiment] but despite the potential mini-agreement, most US tariffs on imports from China are still harming Chinese exports," said Chaoping Zhu, global market strategist at JPMorgan Asset Management.
The Shanghai Composite fell 1[ads1].3% Friday, deleting the gain the index had made since news of a deal.
The Chinese data showed some retrieval in September. Growth in industrial production jumped to 5.8% from 4.4% last month, and retail sales rose 7.8% in September compared to the same period a year ago.
But experts warn that recovery can be short-lived.
Julian Evans-Pritchard, senior Chinese economist of economics, says Julian Evans-Pritchard, senior China economist of capital economics, "global demand will continue to weigh on exports. Financial constraints mean infrastructure spending will decline in the short term." in a research note to clients.
Analysts at Nomura see China's GDP growth fall to 5.8% in the fourth quarter of 2019 as exports are hit again by the declining global economy and trade conflict.
Aramco's IPO is delayed … again
Investors will have to wait a little longer for a piece of Saudi Aramco's massive public listing.
What Aramco says: "The company continues to cooperate with shareholders on stock market readiness. The company is clear and the time will depend on market conditions and be at a time when shareholders' choices are made."
Remember: The outstanding September attack on Aramco, the world most profitable company, knocked out half the oil production. But Aramco quickly restored production and eased the fear of shortages.
The company had been clear that it did not expect the incident to derail the IPO process, and analysts believed it actually strengthened Crown Prince Mohammed bin Salman's decision to get a deal done. But investors apparently want more information about the company's finances before committing to a valuation in the $ 2 trillion area that bin Salman is targeting.
Let Brexit vote count begin
Johnson still needs to get the deal in a special session for the British Parliament scheduled for Saturday. Opposition parties and a group of legislators from Northern Ireland say they will not support the deal, raising serious doubts about Johnson's success where his predecessor, Theresa May, failed.
"Johnson has a chance, but it's going to be close," Kallum Pickering, Berenberg's senior economist, said Thursday in a note to clients. Expect the pound to keep bouncing on Friday as traders keep a running record of the parliamentary arithmetic.
Up Next
Even today:
- The annual meetings of the IMF and the World Bank take place in Washington, with speakers such as Bank of England Governor Mark Carney.
Coming tomorrow: Britain's parliament will hold a vote on Prime Minister Boris Johnson's new Brexit deal.
