Home / Business / Premarket shares: With China's latest GDP data, it is difficult to ignore the fear of growth

Premarket shares: With China's latest GDP data, it is difficult to ignore the fear of growth

China's growth dropped to its lowest level in almost three decades as the world's second largest economy continues to feel the pain of its trade conflict with the United States.

The country's gross domestic product grew by 6% between July and September, my CNN Business colleague Laura Han reports from Hong Kong. This is the weakest quarterly growth rate since 1992, down from 6.2% in the previous quarter.

Context: The worse-than-expected figure emerged just a week after the US and China reached a tentative trade violence to prevent more harm. That agreement may relieve some pressure on China's economy. But it is far from a cure.

"Ongoing negotiations may have some positive impact on business [sentiment] but despite the potential mini-deal, most US tariffs on Chinese imports remain and hurt Chinese exports," said Chaoping Zhu, global market strategist at JPMorgan Asset Management .

The Shanghai Composite fell 1

.3% on Friday, erasing gains that the index had made since news of a deal.

The Chinese data showed some recovery in September. Growth in industrial production jumped to 5.8% from 4.4% last month, and retail sales grew by 7.8% in September compared to the same period a year ago.

However, experts warn that any recovery may be short-lived.

"Cooling global demand will continue to weigh on exports, fiscal constraints will reduce infrastructure spending in the short term, and the recent boom in real estate construction looks relaxed," said Julian Evans-Pritchard, senior China's economist for Capital Economics said in a research report to customers.

Analysts at Nomura see China's GDP growth fall to 5.8% in the fourth quarter of 2019 as exports hit again by the slowing global economy and trade conflict.

Aramco's IPO gets delayed … again

Investors will have to wait a little longer for a piece of Saudi Aramco's massive public listing.

  Saudi Aramco delays IPO to clarify the effects of attacks
The timing of the blockbuster IPO is pushed back to allow the state Saudi oil company to publish quarterly results, which will clarify the effect of last month's attacks on its oil facilities, a source familiar with the process told CNN Business.
Market watchers had expected the IPO to be launched in the coming days, paving the way for a listing in November at Saudi Arabia's Tadawul exchange in Riyadh.

What Aramco says: "The company continues to cooperate with the shareholders on IPO contingency activities. The company is ready and the timing will depend on the market conditions and be at a time when the shareholders' choice."

Remember: The outstanding September attack on Aramco , the world's most profitable company, briefly knocked out half of its oil production. But Aramco quickly restored production, which led to the market fearing a shortage.

The company had been clear that it did not expect the incident to trace the IPO process, and analysts believed that it actually strengthened Crown Prince Mohammed bin Salman's decision to settle. But investors obviously want more information about the company's finances before making a $ 2 trillion valuation that bin Salman is targeting.

Let the Brexit vote begin

The British pound and UK stocks shot up on news that Prime Minister Boris Johnson had climbed a new Brexit agreement with the European Union. Then the political reality began.

Johnson still needs to get his business through a special session in the UK Parliament scheduled for Saturday. Opposition parties and a group of legislators from Northern Ireland say they will not support the agreement and raise serious doubts about Johnson's success where his predecessor, Theresa May, failed.

"Johnson has a chance, but it will be tight," Kallum Pickering, senior economist at Berenberg, said Thursday in a note to clients. Expect the pound to remain hopeful on Friday as traders hold a run of parliamentary math.

Up Next

American Express ( AXP ) and Coca-Cola ( KO ) reports the results before the US markets open.

Even today:

  • The IMF and the World Bank's annual meetings take place in Washington, with speakers such as Bank of England Governor Mark Carney.

Coming tomorrow: Britain's parliament will hold a vote on Prime Minister Boris Johnson's new Brexit agreement.

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