European stocks mixed; German wholesale prices slip, Chinese property woes rise
Investing.com — European stock markets traded in a mixed fashion Monday, as investors digested better-than-expected German inflation numbers as well as persistent concerns about Chinese economic growth.
At 03:45 ET (07:45 GMT), the DAX index in Germany traded 0.1% higher, while the CAC 40 in France dropped 0.1% and the FTSE 100 in the U.K. fell 0.4%.
European investors received a minor boost Monday after German wholesale prices fell 0.2% to the month in July, considerably better than the 1.4% drop expected, a sign of life in the battered German economy.
That said, this still represented an annual fall of 2.8% as the eurozone's largest economy struggles with the toxic mix of weak trading with key partner China and a slump in its large manufacturing and construction sectors.
Additionally, the possibility of U.S. interest rates rising further after Friday’s stronger-than-expected producer price index will act as a drag on the global economy.
The reading, which came after data also showed an increase in consumer inflation, pushed up concerns that the Federal Reserve will keep hiking when it next meets in September.
There also remain worries about China's debt-laden property sector.
Country Garden (HK:2007), one of the country’s biggest developers, warned of a hefty $7.6 billion loss in the first half of 2023, prompting sharp selling to a new record low on Monday.
The company is also facing difficulty in meeting its debt obligations, having suspended trading in 11 of its onshore bonds, prompting fears of a default and more headwinds for the country’s economic recovery from its COVID hit.
China has the second-largest economy in the world, and is a major regional growth driver as well as a massive market for Europe’s largest
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