Release of Negative Final Readings for Economic Growth Rate in the UK

The UK’s Office for National Statistics released the final data for the country’s GDP growth rate
for the second quarter of the year this Monday morning.
The readings were highly negative and fell short of expectations.

Content:

United Kingdom
Oil
China

United Kingdom

Official data revealed that the UK economy recorded a real GDP growth of 0.5% during the second quarter,
while markets were expecting economic growth of around 0.6%.
It is worth noting that the economic growth rate in the UK for the first quarter stood at 0.6%.
On an annual basis, the growth rate for the second quarter was approximately 0.7%,
whereas markets had anticipated a growth rate of 0.9%.
The previous reading for the indicator had shown a rise of 0.9%.

This indicator measures the inflation-adjusted change in the value of all goods and services produced by the UK economy.
It holds great importance as it is considered the broadest measure of economic activity
and a key indicator of the overall health of the economy.

Oil

Oil prices rose as traders assessed the risks in the Middle East and China’s economic stimulus efforts.
Oil prices climbed as the market watched for how Iran would respond to the killing of Hezbollah leader Hassan Nasrallah by Israel.
Investors are also evaluating China’s steps to support its economy, the world’s largest oil importer.

Brent crude for December delivery, the most active contract, surpassed $73 per barrel,
with West Texas Intermediate trading above $69 per barrel.
Nasrallah was killed in an airstrike on the Lebanese capital Beirut, delivering a major blow to the group and its sponsor, Tehran.
Meanwhile, Israeli occupation aircraft bombed targets in Yemen after attacks by Iranian-backed Houthi rebels earlier this month.
Despite this, oil remains low this year, as rising tensions in the Middle East have not yet escalated into a full-blown confrontation that could threaten oil supplies from the region. At the same time, global production remains abundant,
with “OPEC+” planning to ease production cuts, and China’s slowdown has weakened demand,
although recent stimulus measures by Beijing may offset some of this impact.

China

Chinese stocks saw their biggest rise since 2015 and are heading toward a bull market.
Chinese stocks rose for the ninth consecutive day as government incentives attracted investors back to one of the most battered markets globally.
The “CSI 300” index jumped 6.5% on Monday, its highest level since 2015, as traders rushed to buy stocks in the last session before a week-long holiday. After losing more than 45% of its value from its peak in 2021 until mid-September, the index has now risen by more than 20%, signaling a move toward a bull market. Last week’s rally was the biggest since 2008.
The continuous rise followed the relaxation of homebuyer rules in three of China’s largest cities, while the central bank also moved to lower mortgage rates. These recent measures were part of a broader stimulus package announced on Tuesday, which also included interest rate cuts, freeing up cash for banks, and supporting liquidity in the stock market.

Release of Negative Final Readings for Economic Growth Rate in the UK

Release of Negative Final Readings for Economic Growth Rate in the UK

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