The most recent data from China showed that retail sales were up 3.4%, fixed-asset investment was just up 0.5%, and industrial production was up 5.2% YoY (the lowest in a year). This suggests a decline in local demand, which might have an impact on commodities, multinational corporations (AAPL, TSLA, NKE), and international commerce.
On the other hand, slower growth in China reduces inflation pressure, perhaps allowing the Fed to make cuts. Is domestic resiliency sufficient to keep stocks rising, or does this become a drag on U.S. earnings?
Should American Investors Be Concerned About China's Slowdown?
byu/Ancient-Stock-3261 instocks
Posted by Ancient-Stock-3261
6 Comments
Nah no matter what number only go up.
Not really, this has been going on since atleast 2022, they just keep running various stimulus programs to stave it off.
https://www.cnbc.com/2024/11/08/china-expected-to-announce-highly-anticipated-fiscal-stimulus-package.html
Here’s an example from last year
CPI is up. Unemployment is stable at around 5.25%. Come on JPOW. Raise hikes and show Donald who has the real POWer.
China is only 10ish percent of the global consumption. USA is more than 30% so China doesnt matter.
honestly this is kind of a mixed bag. slower growth in china could hit companies that rely on exports or china demand, but lower inflation pressure might give the fed room to cut rates which usually helps stocks. really comes down to how strong the us consumer and domestic demand stay, because that could offset some of the drag from china 🤷
I’m not worried about their slowdown, I’m worried about their overproduction wrecking companies worldwide.