Categories: Business Daily

European markets heading lower as Chinese growth plans disappoint

  • European markets lower, with Ashtead leading the declines
  • Chinese growth target disappoints
  • US election in focus as Trump hopes to push Haley out the running

European markets are off to a slow start, with the FTSE 100 leading the way lower thanks to a weak showing for banks and energy stocks. However, Ashtead are the big FTSE 100 losers this morning, with the equipment-rental firm losing over 7% after a disappointing earnings report that saw them reign in 2024 expectations while reporting lower-than-expected profits. Floundering activity in their US operations has provided a drag on the firm, which looks likely to struggle following a year that has seen this historically strong stock struggle for direction.

Chinese stocks have been hit hard overnight, with traders clearly underwhelmed after Premier Li Qiang set out the government’s growth target and plan of action to fix an ailing economy this year. Ongoing concerns around Chinese real estate and unsustainable levels of debt highlight the perception that the Chinese are currently willing to forego near-term growth in a bid to place the country on a more stable footing. While the Chinese would historically adopt a highly proactive approach when faced by slower rates of growth, the fact that their announcement instead focused on real estate and financial regulation serves to highlight their priorities going forward.

US politics come back into play today, as ‘Super Tuesday’ sees 15 states vote to choose their candidates for the upcoming election. While the chance of Nikki Haley overtaking Trump to take the Republican candidacy are already slim, there is a strong chance that we see her drop out entirely should she fall further behind. Markets will be keeping a close eye out for the release of factory orders and the ISM services PMI due for release later, with the influence of US economic data likely to grow as we head through a week that peaks with Friday’s jobs report. Services sector inflation remains a thorn in the side of the Fed, and thus traders should keep a particular eye out for the ISM services prices metric, which spiked to a 11-month high of 64 in January.

Share this article:
Joshua Mahony

Recent Posts

Eurozone CPI drops ahead of ECB meeting, as ASML helps allay tech fears

ECB in focus after surprise CPI decline TSMC earnings expected to lift tech-heavy Nasdaq Gold…

3 weeks ago

Eurozone inflation hits target, as markets await US ISM data

Eurozone CPI decline finally drops below 2% target US ISM PMI in focus, while expectations…

1 month ago

Markets await core PCE volatility after EUR and JPY fireworks

Asian fireworks continue, although Nikkei gains likely to reverse on Monday Inflation data sparks EUR…

1 month ago

European markets rise despite dour ZEW data

ZEW declines fail to stifle European stocks Markets growing confident of a 50bp Fed rate…

2 months ago

Cautious end to the week for stocks, as precious metals shine

Mainland European markets on the rise Gold and Silver push higher amid dovish Fed pivot…

2 months ago

Markets on the rise despite mixed CPI report

European markets follow US stocks higher following CPI release ECB expected to cut by 25bp…

2 months ago