European stocks advance despite China slowdown

LONDON (AFP) – Europe’s stock markets rose in early deals yesterday despite data showing that China’s economy grew at its weakest pace in nearly three decades, slammed by the United States (US) trade war.

London’s benchmark FTSE 100 index gained 0.2 per cent to 7,521.51 points, compared with the close last Friday.

In the eurozone, Frankfurt’s DAX 30 won 0.8 per cent to 12,425.87 points and the Paris CAC 40 added 0.4 per cent to 5,597.17.

Asian markets however sank on weak second-quarter growth in China, which is the world’s second largest economy after the US.

China’s economy expanded 6.2 per cent in the second quarter, the worst reading since the early 1990s, data showed.

“There’s no doubt in anyone’s minds that the trade war is a major contributing factor here,” noted Oanda analyst Craig Erlam.

The reading was however in line with forecasts and within the Chinese government’s target range.