Stocks slumped late last week after the Dow reached record numbers, due in part to Chinese statistics showing lower than expected gains. Government data showed China’s industrial production only rose 9.9 percent in January and February. Analysts in a Bloomberg survey said they projected a 10.6 percent growth. Separate figures showed retail sales in China rise by only 12.3 percent, which again failed to reach projected marks.
U.S. stocks recovered this afternoon as Standard and Poor’s 500 Index approach record highs and U.S. market volatility approaches its lowest level in almost six years. Still, many are concerned by China’s lower than expected industrial production and consumer spending. According to Reuters UK, Chinese inflation in February was at a 10-month high, and policymakers are faced with a “looming dilemma” as to how to best address the economic cool off.
Here are Wall Street Journal and Bloomberg Businessweek articles talking about the Chinese impact on U.S. stocks:
And here’s the article from the U.K. perspective from Reuters: