China’s economy has slowed down significantly in the latest quarter, amid the tensions and uncertainties surrounding the tariffs imposed on the nation by President Donald Trump.
China’s Growth Slows Amid Tariffs
The world’s second-largest economy grew at its slowest annual pace in a year, with its third-quarter GDP growth, for the months between July and September, coming in at 4.8%. This is down from 5.2% the prior quarter amid escalating trade tensions and slacking domestic demand, according to a report by APNews.
Despite this, the nation’s exports have held strong, as Chinese companies have begun moving their sales to other global markets.
US Stock Futures Inch Higher, Asian Markets In The Green
Hong Kong’s Hang Seng index is up 2.47% on Monday, trading at 25,870.32, while the mainland’s CSI 300 Index is up 0.80%, at 4,550.33. The Shanghai Composite index is up 0.69% on the news, trading at 3,866.09.
The S&P 500 futures are up 0.23% or 15.25 points at 6,717.75, Nasdaq futures are up 79.25 points, or 0.32%, trading at 25,065.25, followed by Dow Futures, up 0.17%, or 77 points at 46,460.00.
Meanwhile, Japan’s Nikkei 225 is up 2.52% on Monday morning trade, at 48,970.40, with electrical, manufacturing and export-oriented stocks leading the rally.
Gold, US Dollar Head Higher
The U.S. Dollar Index (DXY) is largely flat, trading up 0.02% on Monday, and is up 1.15% over the past month, despite the escalating trade tensions between the U.S. and China.
Gold’s spot price is up 0.05%, trading at $4,256 an ounce, down from its all-time high of $4,379.60 an ounce, which it hit last week.
U.S. stock futures are rallying on Sunday night, following President Donald Trump’sdecision to walk back on his latest tariff escalation with China.
China Accuses The US of ‘Textbook’ Double Standards
On Sunday, a spokesperson for the Chinese Ministry of Commerce said that their “position on the trade war is consistent: we do not want it, but we are not afraid of it,” while adding that their new export controls on rare earths were not bans, but measures to regulate their civilian use.
They further accused Washington of a “textbook double standard,” highlighting the fact that the U.S. has over 3,000 items in its export controls list, while China only has about 900.
US Futures Rally Amid Trump’s De-Escalation
Trump posted on Truth Social on Sunday, saying, “Don’t worry about China, it will all be fine,” adding that the “Highly respected President Xi just had a bad moment,” hinting at de-escalation.
The S&P 500 futures are up 1.30% or 85.75 points at 6,680.25, Nasdaq futures are up 428 points, or 1.76%, trading at 24,825.00, followed by Dow Futures, up 0.90%, or 413 points at 46,119.00.
Meanwhile, Japan’s benchmark Nikkei 225 is down 1.01%, or 491 points in early trading on Monday, with steel, electronics, mining and export-oriented stocks leading the decline, while retail, pharmaceuticals and FMCG stocks buck the trend during the day.
The U.S. Dollar Index (DXY) is down 0.04% on Monday, trading at 98.933, amid growing concerns that the declining dollar could spark fresh inflationary pressures.
Investors on Monday will be closely watching the earnings release of Fastenal Co. (NASDAQ:FAST) and the Rocky Mountain Chocolate Factory Inc. (NASDAQ:RMCF).
U.S. stock futures are down on Tuesday night, following Congress’s failure to pass the funding bill, which will lead to the federal government shutting down after midnight.
On Tuesday evening, hours before the government shutdown, Russell Vought, the Director of the Office of Management and Budget, instructed the leaders of various federal agencies to begin preparations for an “orderly shutdown,” while noting that the duration is “difficult to predict.”
The S&P 500 futures are down 0.40% or 27 points at 6,712.00, Nasdaq futures are down 104.50 points, or 0.42%, trading at 24,797.50, followed by Dow Futures, down 0.34%, or 157 points at 46,532.00.
Meanwhile, Japan’s benchmark Nikkei 225 is down 0.95%, or 491 points in early trading, extending its decline from previous trading days. Construction, engineering and other heavy industries stocks led the decline, while IT services, pharmaceuticals and entertainment stocks rally.
The U.S. Dollar Index (DXY) is flat on Tuesday, trading at 97.8338, amid growing concerns that the declining dollar could spark fresh inflationary pressures.
Investors will be closely watching stocks such as RPM International Inc. (NYSE:RPM), Acuity Inc. (NYSE:AYI) and ConAgra Brands Inc. (NYSE:CAG), which are set to release their quarterly earnings reports on Wednesday.
Several biotech stocks have seen their strength fade over the past week, with their Momentum scores in Benzinga’s Edge Stock Rankings witnessing a significant decline.
Top 4 Biotech Stocks With A Dip In Momentum Scores
In Benzinga’s Edge Rankings, Momentum is calculated based on the relative strength of a stock, taking into consideration its price movements and volatility across multiple time frames, ranked as a percentile against other stocks.
Over the past week, the following biotech stocks have seen big declines in their respective momentum scores, and here’s why?
Shares of Capricor Therapeutics Inc. (NASDAQ:CAPR) have lost steam after the FDA issued a Complete Response Letter rejecting its application for Deramiocel, a cell therapy targeting Duchenne muscular dystrophy. The agency flagged both efficacy concerns and issues with the company’s manufacturing processes.
The stock is down 57.69% year-to-date, and 17.58% over the past month, leading its Momentum scores to drop from 77.57 to 22.12 within just one week.
According to Benzinga’s Edge Stock Rankings, the stock scores poorly on Momentum and Value, with an unfavorable price trend in the short, medium and long terms. Click here for deeper insights into the stock.
2. Lava Therapeutics NV
Dutch biotech company, Lava Therapeutics NV (NASDAQ:LVTX), is down 46.74 points in its Momentum score, dropping from 82.03 to 35.29.
The stock lost its momentum after the company posted a wider-than-expected second-quarter net loss, which was quickly followed by a rating downgrade by Jefferies, from a “Buy” to a “Hold.”
The stock scores poorly on Momentum and Value in Benzinga’s Edge Stock Rankings, but has a favorable price trend in the short, medium and long terms. Click here for deeper insights into the stock.
3. Alaunos Therapeutics Inc.
Clinical-stage oncology company, Alanunos Therapeutics Inc. (NASDAQ:TCRT), has seen its Momentum drop 31.48 points within a week, from 56.44 to 24.96, primarily driven by the steep decline in the stock starting mid-July, with no major catalyst or fundamental news to blame.
The stock is still up 15.74% year-to-date, following a 63% decline from its 52-week high of $6.20 during the second week of July.
The stock has a low momentum score, and has an unfavorable price trend in the short, medium and long-terms. Click here for deeper insights into the stock, its peers and competitors.
4. Champions Oncology Inc.
New Jersey-based Champions Oncology Inc. (NASDAQ:CSBR) has been under pressure after its disappointing second quarter results, when it reported a drop in revenue, alongside widening losses. The stock is down 13.90 % year-to-date, and 41.1% from its 52-week high early this year, leading to a 26.44 point drop in its Momentum score, from 78.47 to 52.03.
The stock still scores high on Momentum, but does poorly on Value and Quality, with an unfavorable price trend in the short, medium and long terms. Click here for deeper insights into the stock.
U.S. Stock futures slipped on Sunday evening, following the Fourth of July weekend, after President Donald Trump’s confirmation regarding the reciprocal tariffs that are set to go into effect on August 1, instead of July 9.
The S&P 500 Futures trade at 6,297.50, down 0.43%, followed by Nasdaq Futures at 22,956.50, down 0.46%, and finally Dow Jones Futures down 0.33%, trading at 44,944.00, at the time of writing this.
This comes amid President Donald Trump saying that he would be sending out letters to America’s trading partners, announcing that tariffs would be back to April 2 levels, if there was no progress being made on signing a trade deal with the United States by then, according to a report by CNBC.
Speaking alongside Trump, Commerce Secretary Howard Lutnick said that the tariffs will go into effect on August 1, adding that “the president is setting the rates, and the deals, right now,” to which Trump nodded in approval.
Treasury Secretary Scott Bessent said the same during his appearance on CNN’s “State of the Union” earlier in the day, saying that tariffs will “boomerang” back to “Liberation Day” levels, “if things don’t move along.”
Japan’s Nikkei 225 benchmark is down 204 points or 0.51%, trading at 39,608, with engineering, electronics and export-oriented stocks leading the decline.
The U.S. Dollar Index (DXY) is up 0.10%, trading at 97.098 against a basket of currencies, recovering from its lowest levels in over three years last week, hit by growing fiscal concerns, persistent trade uncertainties and expectations of faster rate cuts by the Federal Reserve.
While there are no noteworthy data releases or economic events on Monday, investors will be closely watching Barnes & Noble Education Inc.’s (NYSE:BNED) third quarter results later in the day.
