Monday 18 October 2021

China. An Energy, GDP And Missile Miss.

 Baltic Dry Index. 4854 -208 Brent Crude 85.79

Spot Gold 1768

Coronavirus Cases 02/04/20 World 1,000,000

Deaths 53,100

Coronavirus Cases 18/10/21 World 241,475,527

Deaths 4,914,142

An optimist will tell you the glass is half-full; the pessimist, half-empty; and the engineer will tell you the glass is twice the size it needs to be.

Oscar Wilde.

Today, it’s mostly about China and the rising damage to the Chinese economy from China’s coal crisis that’s causing widespread power cuts.

Add in a very wobbly Chinese real estate sector, China’s wholesale prices rising at the fastest pace in 25 years, and it’s easy to understand China’s GDP miss.

For the missile miss scroll down to the Technology Update section.

Chinese and HK shares fall as China Q3 GDP misses estimates

HONG KONG, Oct 18 (Reuters) - Mainland Chinese and Hong Kong equity markets fell on Monday after data showed China's economy grew more slowly than expected in the third quarter, weighing on regional stocks, athough losses were capped by hopes of support from policymakers.

Oil prices, meanwhile, hit new multi-year peaks, continuing their recent surge amid a global energy shortage, with U.S. crude at a fresh seven-year high and Brent at a three-year high.

China's gross domestic product (GDP) grew 4.9% in July-September from a year earlier, the weakest pace since the third quarter of 2020, as China grappled with power shortages, supply bottlenecks and sporadic COVID-19 outbreaks as well as rising jitters over the property sector. read more

Chinese blue chips (.CSI300) were down 1.53% and the Hong Kong benchmark (.HSI) lost 0.56%, although most of the falls came right after the bell, prior to the release of the data.

More

https://www.reuters.com/business/global-markets-wrapup-2-2021-10-18/

China's GDP growth hits 1-year low as power crunch, bottlenecks choke output

BEIJING, Oct 18 (Reuters) - China's economy grew at the slowest pace in a year in the third quarter, hurt by power shortages, supply bottlenecks and sporadic COVID-19 outbreaks and raising heat on policymakers amid rising jitters over the property sector.

Data released on Monday showed gross domestic product (GDP) grew 4.9% in July-September from a earlier, the weakest pace since the third quarter of 2020 and slowing from 7.9% in the second quarter.

That marked a further deceleration from the 18.3% expansion in the first quarter, when the year-on-year growth rate was heavily flattered by the very low comparison seen during the COVID-induced slump of early 2020.

"The domestic economic recovery is still unstable and uneven," said National Bureau of Statistics (NBS) spokesperson Fu Linghui at a briefing in Beijing on Monday.

A Reuters poll of analysts had expected GDP to rise 5.2% in the third quarter.

----The world's second-largest economy has rebounded from the pandemic but the recovery is losing steam, weighed by faltering factory activity, persistently soft consumption and a slowing property sector as policy curbs bite.

"In response to the ugly growth numbers we expect in coming months, we think policymakers will take more steps to shore up growth, including ensuring ample liquidity in the interbank market, accelerating infrastructure development and relaxing some aspects of overall credit and real estate policies," said Louis Kuijs, head of Asia economics at Oxford Economics.

More

https://www.reuters.com/world/china/china-q3-gdp-growth-hits-1-year-low-raising-heat-policymakers-2021-10-17/

China Sept daily steel output lowest since Dec 2018 on power curbs

October 18, 2021

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