CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
China’s tech firm earnings to show trade war scars
The biggest firms in China are set to reveal a slowdown in revenue growth when they report earnings for the quarter ending in June, according to estimates collected by Refinitiv.
Chinese giants such as Alibaba, Tencent, and Baidu are lining up to report earnings, chronicling the impact of the escalating US-China trade war. China’s two biggest companies, Alibaba and Tencent, have together lost nearly $100 billion in market capitalisation since the last time tensions notably escalated in May.
For months now the trade dispute between Washington and Beijing has hammered the Chinese economy and dented consumer spending. Q2 saw the Chinese economy expanded 6.2% – a 27 year low for the pace of growth. Consumer focused businesses are struggling to maintain their normal lightning pace of sales growth. Consumers are tightening their belts in the face of rising prices. Meanwhile, B2B outfits are seeing their clients cut back on advertising spend.
All this, according to the consensus estimates collected by Refinitiv, will see China’s top companies reporting an average annualised growth rate of 26%. This would be the slowest in a year and a half. Net income is predicted to clock in around 9% on average, versus average growth of 50% reported during Q2 of 2018.
Could Q3 prove even worse for Tencent, Alibaba, and Baidu?
Perhaps most distressing for investors is that the worst could still be to come; the latest reporting period ended before Donald Trump sent markets tumbling by announcing further tariffs and the People’s Bank of China responded by allowing the yuan to slip above 7 to the dollar for the first time in 10 years.
Even if these tech and e-commerce giants have proved to have weathered the storm over the second quarter, Q3 promises greater challenges, and yet more pain.
Markets.com is the state-of-the-art trading platform provided by Markets.com. As part of Finalto (Australia) Pty Ltd, a constituent of Playtech, a FTSE 250 listed company, at Markets.com we have deep knowledge of the financial markets and an incredible range of resources to continually raise the bar in the world of financial trading.
The domain au.markets.com is solely and exclusively operated by Finalto (Australia) Pty Ltd which is an Australian based company (ACN 158 641 064) regulated by the Australian Securities and Investments Commission (“ASIC”) under license no.424008. FinaltoAU is located at Level 29, 85 Castlereagh St, Sydney NSW 2000 Australia.
Risk Warning: Trading Foreign Exchange (Forex) and Contracts For Difference (CFDs) is highly speculative, carries a high level of risk and is not appropriate for every investor. Any advice provided on this website is general advice only, and has been prepared without taking your individual objectives, financial situation or needs into account. Before deciding to trade Forex/CFDs offered by MARKETS.COM, you should carefully consider your objectives, financial situation, needs and level of experience, and consider seeking independent professional advice. By trading, you may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin. Please view all our legal documentation here: Regulation and Legal Pack.
Jurisdictional Warning: FinaltoAU AFSL authorizes us to provide financial services to people in Australia. However, FinaltoAU complies with the obligations arising from our AFSL in respect of the financial services provided to all of our clients
FinaltoAU is owned by Finalto (IOM) Limited and is a subsidiary of Playtech PLC, a company traded on the London Stock Exchange’s Main Market and a constituent of the FTSE 250 index.
Markets.com, operated by Finalto (Australia) Pty Ltd Holds Australian Financial Services Licence no. 424008 and is regulated in the provision of financial services by the Australian Securities and Investments Commission (“ASIC”).
Selecting one of these regulators will display the corresponding information across the entire website. If you would like to display information for a different regulator, please select it. For more information click here.
**Terms & conditions apply. Click here to read full policy.
Marketsi An individual approach to investing.
Whether you’re investing for the long-term, medium-term or even short-term, Marketsi puts you in
control. You can take a traditional approach or be creative with our innovative Investment Strategy Builder tool,
our industry-leading platform and personalised, VIP service will help you make the most of the global markets
without the need for intermediaries.
Tracking cookies are used to track visitors across websites. The intention is to display ads that are relevant and engaging for the individual user and thereby more valuable for publishers and third party advertisers.
We’ve noticed you’re on the site. As you are connecting from a location in the you should therefore consider re-entering , which is subject to the product intervention measures. Whilst you’re free to browse here on your own exclusive initiative, viewing the site for your country will display the corresponding regulatory information and relevant protections of the company you choose. Would you like to be redirected to ?