Economy

Wall Street turns even more bullish on China’s economy as the end of zero COVID boosts growth

Published

1 year ago

April 19, 2023

Wall Street’s top banks expect China’s economy to bounce back this year, helped by the end of Beijing’s harsh zero-COVID lockdowns.REUTERS/Kim Kyung-Hoon

Wall Street’s top banks expect China’s economy to shine for the rest of 2023, after the country released an impressive first-quarter gross domestic product (GDP) headline figure on Tuesday.

JPMorgan, Citi, and UBS have all lifted their growth forecasts in recent days after China’s National Bureau of Statistics said the country’s economy expanded by 4.5% year-on-year during the three months ending March 31.

They all expect the end of Beijing’s harsh zero-COVID policies to fuel a rise in consumer spending on goods and services — a key driver of economic growth.

China ended its highly restrictive containment policies at the end of last year after widespread anti-lockdown protests broke out in major cities including Beijing and Shanghai.

Economists polled by Refinitiv expected the Chinese conomy to expand by 4% in the first quarter – so Tuesday’s GDP figure outperformed Wall Street’s expectations.

JPMorgan raised its growth forecast from 6% to 6.4% after China beat expectations, while Citi lifted its GDP target from 5.7% to 6.1%.

UBS also turned more bullish on China’s economy, raising its year-end prediction to 5.7%. It attributed the increase to an expected rise in consumer spending now that harsh lockdowns across the country have ended.

“We continue to expect consumption to drive China’s economic recovery this year,” a team led by the Swiss bank’s CIO, Mark Haefele, said in a research note seen by Insider. “We expect China’s GDP to peak around 8% in the second quarter before easing to around 5.5% in the second half of the year.”

“This will bring the full year GDP growth to at least 5.7%, in our view,” the strategists added.

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Economy

S&P/TSX composite gains almost 100 points, U.S. stock markets also higher

Published

9 hours ago

September 13, 2024

Anne Joseph

TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.

The S&P/TSX composite index closed up 93.51 points at 23,568.65.

In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.

The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.

The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.

The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Economy

Statistics Canada reports wholesale sales higher in July

Published

16 hours ago

September 13, 2024

Anne Joseph

OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.

The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.

The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.

The personal and household goods subsector fell 2.5 per cent to $12.1 billion.

In volume terms, overall wholesale sales rose 0.5 per cent in July.

Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.

This report by The Canadian Press was first published Sept. 13, 2024.

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Economy

S&P/TSX composite up more than 150 points, U.S. stock markets mixed

Published

2 days ago

September 12, 2024

Anne Joseph

TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 172.18 points at 23,383.35.

In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.

The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.

The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.

The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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