Has The Chinese Economic Slowdown Affected Markets Worldwide?
With economies worldwide paving the way to recovery after what seems like the worst of the Coronavirus pandemic, global prices have in recent days started to slide. This is due to a slowdown from China, in particular, contrasting its usually dominating position.
It is feared this is due to a combination of natural disasters which have been hitting the country as of late, and random, scattered outbursts of COVID-19.
So how does this Chinese economic slump affect the stock market as a whole?
Chinese Slowdown And The London Stock Exchange
China is the world’s second-largest economic superpower. This means when its capital, Beijing, releases data about economic growth and retail sales, markets all over the world are affected – for better or for worse.
Unfortunately, due to the recent release of statistics showing figures that were much lower than anticipated, the London stock market has been hurt.
For example, sources show that the FTSE 100 dropped by almost under 1%. The same analysis also shows that this led to the falling of many stocks such as that involving Rio Tinto, Glencore, and Anglo American.
At the close, stocks such as these ended up losing 65 points, clocking in a total of 7,154 points.
…And European Markets?
As with the London stock market, other European stock markets are also affected by the Chinese economic slowdown.
Arguably, markets such as those in Frankfurt, Milan, and Paris were hit harder, as these markets saw even bigger fallings of share prices.
This comes record highs were achieved by the Euro Stoxx 600.
However, other economic factors such as the Taliban’s takeover of Afghanistan can also be blamed for this.