U.S. equity markets were strongly in the red today amid positive comments over the weekend regarding the ongoing trade war between Beijing and Washington. The economic calendar was bare on Monday.
The market move came amid strong earnings reports from American too-big-to-fail banks and Netflix.
Over the weekend Chinese officials said they would like to end the trade conflict as the consequences were negative for China and the U.S.
“…behind the scene’s China’s economy is quickly decelerating, and fresh evidence last week shows GDP could slip under 6%. China’s GDP, published last Friday, showed 6% growth for 3Q, the weakest quarterly prints since 1992 and down from 6.2% in 2Q,” reported Zero Hedge.
“Trade tension with the US is the key factor weighing on business sentiment and investment activities, although domestic stimulus policies are providing some buffer from the downside,” said Chaoping Zhu, a global market strategist for JP Morgan.
The latest growth (and trade) figures suggest China’s economy is slowing even more as we enter 4Q. In fact, according to Lipper Alpha Insight’s China Momentum Indicator (CMI) 2.0, the latest China GDP was likely at 4.2%, a third below the official print.