DHL, Maersk and UPS shares: when China sneezes, the world catches a cold
China’s imports and exports fell much faster than expected in July. Global trade-related firms including DHL, Maersk and UPS are also warning on H2, reports IG financial analyst @AngelineOng
(Video Transcript)
Chinese trade figures plummet
It's often said that when China sneezes, the world catches a cold and China's economy is indeed not looking its best at the moment.
Just taking a look at the chart here for you, China's imports and exports fell much faster than expected in July as weaker demand threatened its recovery prospects, heightening pressure for authorities there to release fresh stimulus to steady growth.
Economic activity set to slow
Now, these numbers come as economic activity could slow further in the third quarter with construction services, manufacturing, industrial profit all weakening.
So where is the salad dressing? At the moment, we're also seeing other indicators flashing red. So, for example, United Parcel Service (UPS), cut its 2023 sales forecast. We also saw DHL coming out saying that China's trade routes with the US and also with Europe is looking particularly weak.
It's also warning this week that it was concerned about the outlook for the rest of this year.
So where is the salad dressing? If we continue to see these companies warn about trades from China and with China, then it could mean that it could scupper the nascent global economic recovery underway.
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