German inflation steady at 1.7% in July; stocks drop after China trade surplus data

Note: This section contains information in English only.
Source: Dukascopy Bank SA
"The swath of disappointing data [have] confirmed how difficult it is to turn China's economy around…"
- Rebecca O'Keefe, head of investment at Interactive Investor

Inflation in Europe's largest economy remained unchanged at 1.7 per cent in July, compared to the prior month, national statistics office Destatis data showed on Friday. The cost of living increased by 0.4 per cent on a monthly basis, pushed by higher holidays and petrol costs.

European stocks dropped on Friday after a report showed China's trade surplus shrunk by more than forecast.

The Stoxx Europe 600 Index erased 0.14 per cent to 269.88. Germany's DAX Index slid 0.29 per cent and France's CAC 40 Index declined 0.61 per cent.

"The swath of disappointing data [have] confirmed how difficult it is to turn China's economy around and while we can expect stimulus measures to be introduced, questions remain as to how effective they will be in the short term," said Rebecca O'Keefe, head of investment at Interactive Investor.

© Dukascopy Bank SA

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