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The vast majority of retail client accounts lose money when trading CFDs.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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Chinese Stocks Await GDP Growth Data

The Asian session will focus on the key economic release on Monday. 

With no data for the Western economies, China will lead the markets to higher or lower. 

CHI 50 – Daily Chart

chi50 daily chart

Chinese stocks reversed a bounce from the recent support at 12,400, which will be the key to the week ahead. A European Central Bank rate hike on Thursday could create a sour week if China's economy is hampered by the covid zero lockdowns

The market should get a boost from the bullish +776 close of the Dow Jones on Friday, adding to an intense day if GDP figures outperform. Markets expect a bounce to 3.4% from last month's 0.4%, but there is downside risk from the recent lockdowns. A firm number would boost the price of stocks and the demand outlook for commodities like oil. 

There was also concern among traders after the economic data was delayed ahead of the National Congress, with some suggesting that it could mean bad news. 

Xi Jinping said the economy is "resilient." He plans to strengthen economic ties with other countries as he begins a third term as head of the country's ruling party. "China cannot develop in isolation from the world. The world's development also needs China," Xi said. 

At the party congress, Xi continued the "dual circulation" policy to insulate China from economic shocks and US sanctions while maintaining strategic trade and investment links around the globe. Xi said the latter part of that approach is most important, saying that the country's economic opening "will only be wider." 

"We will fully deepen reform and opening up, firmly push forward high-quality development," he added. 

Any changes will likely develop over time, and markets will focus on the Monday growth data instead. We will see if the government is holding back bad news ahead of the party conference. Traders should be on guard for volatility in the Chinese stock market.

Last Updated: 24/10/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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