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European stocks fell, dropping at the same time with the highest level in almost a month, as a report showed that Chinese exports and imports fell unexpectedly.
According to published data, the volume of exports in June fell by 3.1% compared with the same period last year, after the lackluster growth in May, up 1% compared to May 2012. Result for June was significantly worse than expected export increase by an amount slightly greater than 3%.
Weak export completes a series of disappointing indicators of the Chinese economy. However, in a report released Wednesday morning, a statement by Prime Minister Li Keqiang pointed out that the current level of growth is within the acceptable range.
"As long as the rate of economic growth, employment and other indicators do not fall below our minimum limit, and inflation does not exceed the upper limit, we will focus on restructuring and promoting reform," - said Lee.
China's export sector is suffering under the weight of rising wages and a strong yuan, to the detriment of competitiveness, as well as sluggish demand from major trading partners - the U.S. and Europe.
Imports fell in June by 0.7% compared to the same period last year, against a decline of 0.3% in May, indicating that weak domestic demand in the Chinese economy. Value of the index for June is also not in line with expectations of economists, who had forecast an increase in imports by 5.5%.
The positive balance of foreign trade of China in June rose to 27.13 billion dollars against 20.43 billion dollars in May.
U.S. index futures little changed, while Asian shares rose.
The cost of K + S AG fell 4% after UBS AG recommended investors sell shares of potash.
Shares of Burberry Group Plc (BRBY) rose 4.6%, as the retail sales of the spring-summer collection of ornaments contributed to an increase in sales in the fiscal first quarter, more than expected.
The cost of Tryg A / S (TRYG) rose by 1.4% after posting better-than-expected report on profit before tax, which was associated with a reduction in expenditures.
Stoxx Europe 600 Index fell 0.3% to 293.66. Note that yesterday, the index rose to its highest level since June 10, after the financial report from the American Alcoa exceeded expectations.
We also recall that today in the U.S. Federal Reserve will present its minutes of the last meeting. Earlier this month, Federal Reserve Chairman Ben Bernanke said the central bank may reduce the rate of asset purchases later this year, and can completely stop them in about mid-2014, if the U.S. economy shows signs of significant improvement.
At the moment:
FTSE 100 6,493.45 -19.63 -0.30%
CAC 40 3,829.25 -14.31 -0.37%
DAX 8,037.91 -19.84 -0.25%
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