15 Jul 2015
Shanghai Composite drops 4%, China GDP data hurts
FXStreet (Mumbai) - The Shanghai Composite index fell 4% after a better-than-expected China GDP data decreased the necessity of more action from the People’s Bank of China (PBOC).
China’s economy grew 7% in the 12 months to June 30. The actual figure was above above economists’ consensus forecasts for 6.8%, but unchanged from the 7% rate seen in the previous quarter. China retail sales in June rose 10.6% year-on-year, up from 10.1% in May, and above estimates of 10.2%, while industrial production rose 6.8% in June.
However, the equities extended losses after the upbeat GDP data as it meant the PBOC would not have to step up easing in the short-term. Still, the AUD/USD pair jumped 0.5%, while the NZD/USD pair rose 0.3%.
China’s economy grew 7% in the 12 months to June 30. The actual figure was above above economists’ consensus forecasts for 6.8%, but unchanged from the 7% rate seen in the previous quarter. China retail sales in June rose 10.6% year-on-year, up from 10.1% in May, and above estimates of 10.2%, while industrial production rose 6.8% in June.
However, the equities extended losses after the upbeat GDP data as it meant the PBOC would not have to step up easing in the short-term. Still, the AUD/USD pair jumped 0.5%, while the NZD/USD pair rose 0.3%.