Written By After months of struggling to make the most of a volatile stock market, investors are breathing a collective sigh of relief after news of China’s economic data points to an upturn. Global stocks surged on Monday as optimism about the world’s second-largest economy boosted sentiment among investors. The Shanghai Composite Index rose by more than 5% in its biggest one-day gain since 2015, and other Asian markets followed suit. Meanwhile, U.S. futures pointed to a higher open for Wall Street’s three major indexes on Monday. Investors are hopeful that positive economic data out of China will help boost global growth and provide support for riskier assets such as stocks.
China’s Economic Data Points To An Upturn
China’s economy has been on a roller coaster ride in recent years, but the latest data points to an upturn. Industrial production rose 6.3 percent in October from a year earlier, while retail sales climbed 10.0 percent. These are the biggest increases since March 2015.
Investors are betting that this uptick in China’s economy will boost global growth and help to drive up stock prices around the world. The S&P 500 index surged to a new record high on Monday, while European stocks also rose.
There are still some concerns about the sustainability of China’s economic recovery, but for now it’s good news for global markets.
Stocks Surge After China’s Economic Data
Stocks surged on Thursday after China’s economic data pointed to an upturn, with the Shanghai Composite Index climbing 1.4 percent and the Shenzhen Composite Index up 2.1 percent.
The positive data from China came as a relief to global investors who have been worried about the country’s slowdown. Industrial production in China rose 6.9 percent in August from a year earlier, while retail sales jumped 10.1 percent.
China is a key driver of global growth and its economic health is closely watched by investors around the world. The strong data from China helped push stocks higher in Europe and the United States, with the Dow Jones Industrial Average climbing 0.6 percent and the S&P 500 index up 0.8 percent.
Global Stocks Surge
After China’s release of strong economic data, global stocks surged in value. The data pointed to an up turn in the Chinese economy, which boosted investor confidence and led to a broad-based rally in global markets.
In China, the industrial production index rose 9.7% year-on-year in October, while retail sales increased 10.3% over the same period. These figures beat expectations and suggested that the Chinese economy is starting to rebound after a slowdown earlier this year.
The news sent shockwaves through global financial markets, with stocks rallying across the board. In Europe, the UK’s FTSE 100 Index jumped 2.1%, while Germany’s DAX Index soared 3%. Asian markets also ended the day on a high note, with Japan’s Nikkei 225 Index climbing 1.6% and Hong Kong’s Hang Seng Index adding 2%.
The surge in global stock prices is a welcome development for investors who have been bracing for a prolonged period of market volatility. With China’s economy seemingly back on track, there is reason to believe that other major economies will also start to see stronger growth in the months ahead.
How to trade stocks after China’s economic data
China’s economic data for the third quarter of 2019 showed an upturn, with industrial production and retail sales both growing faster than expected. This has led to a surge in global stock markets, as investors believe that the Chinese economy is on the up.
So, how can you trade stocks after China’s economic data points to an upturn? Here are a few tips:
1. Look for stocks that stand to benefit from a growing Chinese economy. For example, companies that export to China or that have operations in China are likely to see an increase in business.
2. Keep an eye on the overall market trend. If global stock markets are rising on the back of China’s economic data, it may be a good time to buy stocks. Conversely, if markets are falling, it may be best to wait for a better opportunity.
3. Pay attention to news and developments regarding China’s economy. Any positive or negative news could impact the direction of global stock markets.
4. Use stop-loss orders when buying or selling stocks. This will help limit your losses if the market moves against you.
5. Consider using leverage when trading stocks. This can help you make bigger profits if your trades are successful, but it can also amplify your losses if the market moves against you
