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Why the world is right to worry about China’s economy

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China’s economic stability is increasingly under scrutiny as it grapples with deflation and a host of internal challenges.

The country saw a decline in consumer prices in July, marking the first time this has occurred in over two years.

Several factors are contributing to China’s economic downturn. These include a rising burden of local government debt, weakened imports and exports, difficulties in the housing market, and a surge in youth unemployment.

These issues are causing unease not only within China but also among global observers. Concerns are growing about the potential repercussions for the international economy.

China’s economic health is increasingly seen as a barometer of the global economy, and any significant downturn in the world’s second-largest economy could have far-reaching consequences.

Country Garden deal

Country Garden, one of China’s largest property developers, has found itself ensnared in a dire financial crisis, with estimated debts of 1.43 trillion yuan ($196 billion) recorded by the close of 2022. This week, the company reported staggering losses of 48.9 billion yuan for the first half of this year.

These ominous developments have ignited widespread concerns that the beleaguered company could face a collapse, potentially sending shockwaves through China’s already beleaguered economy. The nation is grappling with record-high levels of youth unemployment and a decline in consumer spending.

China’s remarkable economic ascent has, in large part, been fueled by the property and construction sectors, which collectively constitute approximately a quarter of the country’s gross domestic product (GDP).

In a significant move to stave off an immediate financial catastrophe, Country Garden’s bondholders convened this week to vote on the postponement of a 3.9 billion yuan ($535 million) bond repayment, providing the company with a lifeline to regain its financial footing. Had the bondholders rejected this extension, Country Garden would have faced the ignominious distinction of becoming the largest Chinese real estate firm to default since its rival, Evergrande, encountered a similar fate in 2021.

However, the latest reports suggest that bondholders have decided to grant Country Garden a reprieve, agreeing to extend the bond repayment deadline until 2026. The company itself has yet to officially confirm the outcome of the vote.

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Australia’s inflation report and Nvidia earnings impact explained

Australia’s inflation report sparks market shifts, influencing interest rates, the Aussie dollar, and investor sentiment amid Nvidia’s earnings.

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Australia’s inflation report sparks market shifts, influencing interest rates, the Aussie dollar, and investor sentiment amid Nvidia’s earnings.


Australia’s latest inflation report is creating waves across the market, with questions about interest rates, the strong performance of the Aussie dollar, and the uneven nature of the stock market rally. Investors are watching closely as changes in carry trade risks this month add another layer of complexity.

David Scutt from StoneX discusses what these shifts mean for trading strategies and the broader economic outlook. He provides insight into how underlying factors are shaping investor confidence and market dynamics.

On the tech side, Nvidia’s upcoming earnings are expected to influence AI development and the broader tech sector. Coupled with trends in SaaS and bitcoin price action, these movements are signalling how investor sentiment is evolving in a fast-changing landscape.

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U.S. stocks rally as AMD, Home Depot, and AI software lead gains

U.S. equities rose as AI disruption fears eased, with Home Depot, AMD, and DocuSign driving tech stock gains.

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U.S. equities rose as AI disruption fears eased, with Home Depot, AMD, and DocuSign driving tech stock gains.

U.S. tech stocks surged as investors’ fears over AI disruption eased. Advanced Micro Devices jumped 9% after Meta announced a multiyear deal to deploy AMD’s graphics processing units for AI data centres. The move highlights growing corporate confidence in AI infrastructure investments.

DocuSign also rose 3% following Anthropic’s confirmation that Claude Cowork can integrate with DocuSign, Google Drive, and Gmail, signalling stronger adoption of AI tools across industries.

The iShares Expanded Tech-Software Sector ETF climbed 2% despite remaining over 30% below its 52-week high, showing tech stocks are recovering but still have room to run.


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Stocks tumble amid AI concerns and Trump tariff update

Dow drops 800+ points as AI and trade worries hit tech and retail stocks; bonds rise amid market volatility.

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Dow drops 800+ points as AI and trade worries hit tech and retail stocks; bonds rise amid market volatility.

Stocks plunged sharply as concerns over artificial intelligence and trade tensions rattled investors, sending the Dow down more than 800 points. Heavyweights like American Express, Goldman Sachs, and JPMorgan were key contributors to the drop.

Software companies were hit particularly hard after a report suggested AI could impact economic growth, triggering further losses across tech shares.

Trade-sensitive retailers including American Eagle Outfitters, Ralph Lauren, and Yeti Holdings also faced setbacks as market uncertainty spiked. Bonds, meanwhile, rallied as investors sought safety in a volatile market.

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