Markets.com Logo
euEnglish
LoginSign Up

Global stocks decline as Chinese data indicates a low economic growth rate

Dec 2, 2024
3 min read
Table of Contents
  • 1. Economic Concerns Weigh on Global Markets as Key Indicators Disappoint
  • 2. Oil Prices Decline Amid Economic Recovery Concerns and Geopolitical Developments
  • 3. Conclusion

stock-04-width-1200-format-jpeg.jpg

Global stocks fell Monday after data misses signaled a low economic growth rate in the US and China.

Global stocks fell on Monday as disappointing data raised worries that the ongoing rise in Delta variant cases of the coronavirus could hinder economic recovery.

In U.S. markets, S&P 500 futures dropped 0.3%, Dow Jones futures declined by 0.3%, and Nasdaq futures were down 0.21% at 6:12 a.m. ET on Monday.
 


Economic Concerns Weigh on Global Markets as Key Indicators Disappoint


Concerns over slowing growth in major economies like China and the U.S. are putting pressure on markets. Key Chinese indicators released Monday fell short of expectations, while the University of Michigan reported a significant decline in its U.S. consumer confidence index on Friday.

An update on U.S. retail sales is set for release on Tuesday, and minutes from the Federal Reserve's latest meeting are expected on Wednesday. Investors are also looking forward to next week's Jackson Hole meeting, anticipating insights into the Fed's monetary policy strategy.

"A weak consumer report tomorrow could undermine recent optimism regarding the U.S. recovery as we approach Q3 and build on the Q2 rebound," said Michael Hewson, chief market analyst at CMC Markets, in a note. "Any doubts about the strength of the U.S. recovery, particularly concerning consumer confidence, will only heighten worries about the overall resilience of the global recovery."

In China, July's monthly figures for industrial production, retail sales, and investment activity were significantly below expectations, while unemployment rose. Investors are increasingly worried that the Delta variant's spread—leading to new local lockdowns and partial port closures—is negatively affecting the country’s economic growth.

Asian markets had a mixed performance: Hong Kong's Hang Seng index dropped 0.88%, while the Shanghai Composite edged up 0.03%. Tokyo's Nikkei 225 closed down 1.62%, as concerns over rising COVID-19 cases overshadowed a better-than-expected second-quarter economic growth report.

European markets opened lower on Monday, with Frankfurt's DAX declining 0.71%, London's FTSE 100 slipping 1.22%, and the Euro Stoxx 50 falling 0.88%. Investors are preparing for important economic data this week from Europe, including GDP growth, unemployment rates, and inflation figures.
 


Oil Prices Decline Amid Economic Recovery Concerns and Geopolitical Developments


Oil futures extended their decline, pressured by concerns over economic recovery. WTI crude fell 1.61%, trading at $67.11 per barrel, while Brent crude dropped 1.47% to $69.55 per barrel.

At the same time, investors are closely watching developments in Afghanistan, where the Taliban appears to be gaining control following the government’s collapse and the U.S. withdrawal. Most analysts believe it is too early to determine the potential impact of these events on markets and investor sentiment.

"Geopolitical developments in Afghanistan are dominating headlines, but it may be premature to assess the potential fallout in the FX market," said Francesco Pesole, FX strategist at ING.
 


Conclusion


Global stocks are on the decline as disappointing Chinese economic data raises concerns about low growth rates. This downturn reflects investor anxiety over the potential impacts of ongoing challenges in major economies, further complicating the outlook for global markets.

When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss. 

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.

 


Risk Warning and Disclaimer: This article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform. Trading Contracts for Difference (CFDs) involves high leverage and significant risks. Before making any trading decisions, we recommend consulting a professional financial advisor to assess your financial situation and risk tolerance. Any trading decisions based on this article are at your own risk.

Frances Wang
Written by
Frances Wang
SHARE

Markets

  • Palladium - Cash

    chartpng

    --

    1.95%
  • EUR/USD

    chartpng

    --

    -0.44%
  • Cotton

    chartpng

    --

    0.22%
  • AUD/USD

    chartpng

    --

    0.10%
  • Santander

    chartpng

    --

    -1.90%
  • Apple.svg

    Apple

    chartpng

    --

    -0.21%
  • easyJet

    chartpng

    --

    -0.03%
  • VIXX

    chartpng

    --

    -1.46%
  • Silver

    chartpng

    --

    0.37%
Most Popular ArticlesView all
  • Feb 24, 2025

    Silver price prediction: What will silver be worth in 2025?

Table of Contents
  • 1. Economic Concerns Weigh on Global Markets as Key Indicators Disappoint
  • 2. Oil Prices Decline Amid Economic Recovery Concerns and Geopolitical Developments
  • 3. Conclusion

Related Articles

Trending stocks analysis: Alibaba, Amazon, Tesla, Apple

Trending stocks analysis: in today’s fast-paced market, certain stocks consistently capture attention due to their performance, innovations, and market dynamics.

Frances Wang|about 22 hours ago

S&P 500 ETFs Analysis: VOO ETF, SPY ETF, VOOG ETF

S&P 500 ETFs Analysis: the S&P 500 index is a benchmark that represents the performance of 500 of the largest publicly traded companies in the United States.

Frances Wang|about 22 hours ago

Progyny stock (PGNY) rises: what’s going on with Progyny Inc?

Progyny stock (PGNY) rises: this article will explore the factors contributing to the company’s stock performance, its business model, and the broader implications for the fertility and healthcare landscape.

Frances Wang|2 days ago
Markets.com Logo
google playapp storeweb tradertradingView

Contact Us

support@markets.com+12845680155

Markets

  • Forex
  • Shares
  • Commodities
  • Indices
  • Crypto
  • ETFs
  • Bonds

Trading

  • Trading Tools
  • Platform
  • Web Platform
  • App
  • TradingView
  • MT4
  • MT5
  • CFD Trading
  • CFD Asset List
  • Trading Info
  • Trading Conditions
  • Trading Hours
  • Trading Calculators
  • Economic Calendar

Learn

  • News
  • Trading Basics
  • Glossary
  • Webinars
  • Traders' Clinic
  • Education Centre

About

  • Why markets.com
  • Global Offering
  • Our Group
  • Careers
  • FAQs
  • Legal Pack
  • Safety Online
  • Complaints
  • Contact Support
  • Help Centre
  • Sitemap
  • Cookie Disclosure
  • Regulation
  • Awards and Media

Promo

  • Gold Festival
  • Crypto Trading
  • marketsClub
  • Welcome Bonus
  • Loyal Bonus
  • Referral Bonus

Partnership

  • Affiliation
  • IB

Follow us on

  • Facebook
  • Instagram
  • Twitter
  • Youtube
  • Linkedin
  • Threads
  • Tiktok

Listed on

  • 2023 Best Trading Platform Middle East - International Business Magazine
  • 2023 Best Trading Conditions Broker - Forexing.com
  • 2023 Most Trusted Forex Broker - Forexing.com
  • 2023 Most Transparent Broker - AllForexBonus.com
  • 2024 Best Broker for Beginners, United Kingdom - Global Brands Magazine
  • 2024 Best MT4 & MT5 Trading Platform Europe - Brands Review Magazine
  • 2024 Top Research and Education Resources Asia - Global Business and Finance Magazine
  • 2024 Leading CFD Broker Africa - Brands Review Magazine
  • 2024 Best Broker For Beginners LATAM - Global Business and Finance Magazine
  • 2024 Best Mobile Trading App MENA - Brands Review Magazine
  • 2024 Best Outstanding Value Brokerage MENA - Global Business and Finance Magazine
  • 2024 Best Broker for Customer Service MENA - Global Business and Finance Magazine
LegalLegal PackCookie DisclosureSafety Online

Payment
Methods

mastercardvisanetellerskrillwire transferzotapay
The markets.com/za/ site is operated by Markets South Africa (Pty) Ltd which is a regulated by the FSCA under license no. 46860 and licensed to operate as an Over The Counter Derivatives Provider (ODP) in terms of the Financial Markets Act no.19 of 2012. Markets South Africa (Pty) Ltd is located at BOUNDARY PLACE 18 RIVONIA ROAD, ILLOVO SANDTON, JOHANNESBURG, GAUTENG, 2196, South Africa. 

High Risk Investment Warning: Trading Foreign Exchange (Forex) and Contracts For Difference (CFDs) is highly speculative, carries a high level of risk and is not appropriate for every investor. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin. Please read the full  Risk Disclosure Statement which gives you a more detailed explanation of the risks involved.

For privacy and data protection related complaints please contact us at privacy@markets.com. Please read our PRIVACY POLICY STATEMENT for more information on handling of personal data.

Markets.com operates through the following subsidiaries:

Safecap Investments Limited, which is regulated by the Cyprus Securities and Exchange Commission (“CySEC”) under license no. 092/08. Safecap is incorporated in the Republic of Cyprus under company number ΗΕ186196.

Finalto International Limited is registered  in the Saint Vincent and The Grenadines (“SVG”) under the revised Laws of Saint Vincent and The Grenadines 2009, with registration number  27030 BC 2023.

Close
Close

set cookie

set cookie

We use cookies to do things like offer live chat support and show you content we think you’ll be interested in. If you’re happy with the use of cookies by markets.com, click accept.