The US stock market worries investors

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Despite yesterday’s attempts of speculators and market makers on wall street to make a correction from the fall, the General background remains worrying and mixed. Yet there is no reason for significant growth of the major world stock exchanges and all market of international capital.
The data for GDP growth of Germany, who came this morning are not encouraging investors, however as data out of China.
Industrial production in China in April rose by only +5.4% in comparison year-on-year, although economists had expected that growth will be 6.5 per cent. In addition, retail sales data are also not held up to the General expectations of global investors. In fact, retail sales increased, but economists hoped for a more serious growth.
It is possible to look at it from the other side: expected a decline, and it was more than laid in their economic model of stock analysts. National Bureau of statistics of China reports that in April, retail sales were at the level of +7,2%, although the expected value is +8.6% for the previous value of +8.7 per cent. However, in China, dropped the unemployment rate from 5.2% to 5.0%.
In addition, the volume of investment in fixed assets in China for the period from January to April increased by 6.1% compared to last year. But global markets were expecting the index to increase by +6.4 per cent after the investment flow has increased by +6,3% from January to March.
Now all news outlets and agencies will report that on the basis of macroeconomic data on growth of industrial production, retail sales and investment, which came in below expectations, business activity in China is slowing. This indicates the slowdown of the economy, and as a result carries risks for the global economy.
So it is too early to rejoice yesterday on wall street. Waiting for Friday to draw conclusions about the prospects of the global capital market.
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Roman Blinov,
Head of analytical Department,
“International financial center”