Thursday

20th Feb 2020

Focus

China offers market relief from euro-crisis

  • Miners and welders traded best on Wednesday after positive news from China (Photo: Wikipedia)

Better-than-expected Chinese economic figures helped markets to bounce back on Wednesday (12 July), after a plunge caused by worries over the spreading euro-crisis.

China's annual gross domestic product grew 9.5 percent in the second quarter, above market speculations of 'only' nine percent growth ahead of the release. It is however slightly slower than in previous quarters, down from 9.7 percent growth.

Read and decide

Join EUobserver today

Support quality EU news

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or join as a group

Chinese industrial output was up 15.1 percent in June, the maximum since May 2010, despite an increase in interest rates by the central bank. Retail sales also boomed at their fastest pace since January, with a 17.7 percent growth compared to last year.

Metal industries came out on the winning side of world markets amid strong confidence in Chinese demand in this sector, after having fallen nearly five percent over the previous three trading days.

The euro also gained some ground lost to the US dollar in recent days, after Moody's on Wednesday warned it may downgrade the US credit rating from its triple A status if squabbles of the government's debt ceiling are not put to an end soon.

According to the International Monetary Fund's projections last month the Chinese economy is expected to grow by 9.6 percent this year, while the European economy, grappling with a spreading sovereign debt crisis, is tipped to grow by a maximum of two percent.

China: 'You can't depend on us alone to rescue Greece'

A 'regular' phone call between EU commission chief Jose Manuel Barroso and Chinese Prime Minister Wen Jiabao on Friday morning was aimed at reassuring markets that China will continue to support the ailing eurozone. But a Chinese diplomat noted that Beijing will only buy those bonds guaranteed to be paid back.

China urges Germany and France to solve euro-crisis

Chinese Prime Minister Wen Jiabao on Thursday offered vague promises to buy bonds from troubled euro-countries, but said that it is ultimately up to Germany and France to solve the crisis.

News in Brief

  1. EU unveils white paper on AI and data strategy
  2. Dutch court rules against Russia in €46bn Yukos case
  3. Britain to bar 'Polish plumber-type' migrants
  4. Greece seeks EU help to get back classical statues from UK
  5. HSBC to cut 35,000 jobs worldwide
  6. Regions chief appeals against cutting EU cohesion funds
  7. Verhofstadt criticises UK Brexit negotiator
  8. Turkish court acquits Gezi park activists

Column

Western 'endarkenment' and the voodoo politics of Europe

The continent that gave the world the Enlightenment has collectively reverted to believing in fairy tales and the soothing power of cozy narrowness. Moscow and Beijing like what they see, and are doing everything to strengthen the trend.

Stakeholders' Highlights

  1. Nordic Council of MinistersScottish parliament seeks closer collaboration with the Nordic Council
  2. UNESDAFrom Linear to Circular – check out UNESDA's new blog
  3. Nordic Council of Ministers40 years of experience have proven its point: Sustainable financing actually works
  4. Nordic Council of MinistersNordic and Baltic ministers paving the way for 5G in the region
  5. Nordic Council of MinistersEarmarked paternity leave – an effective way to change norms
  6. Nordic Council of MinistersNordic Climate Action Weeks in December

Latest News

  1. EU leaders face major clash on rule of law budget link
  2. North Macedonia warns EU on 'dirtiest ever' election
  3. Western 'endarkenment' and the voodoo politics of Europe
  4. Warning of agricultural 'digital arms race' in EU
  5. Cayman Islands put on tax-haven blacklist after Brexit
  6. Boris' Brexit bluff? - UK will resist alignment to the end
  7. US still open to Kosovo-Serbia land swap
  8. EU countries enter final phase of budget talks

Join EUobserver

Support quality EU news

Join us