Photographer: Johannes Eisele/AFP via Getty Images

Charting the Markets: China Slows, Europe Rises

The Shanghai Composite falls from an eight week high, Deutsche Bank shares rise and the euro holds steady.

Commodities dropped after China reported the slowest economic growth since 2009. So, too, did China's equity benchmark. The Shanghai Composite Index closed down 0.1 percent. Europe’s benchmark stock index, though, rose for a third day running — shrugging off the news. China didn't move the markets today like it did last quarter.

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The Shanghai Composite slipped from an eight-week high after the world's second-largest economy reported growth came in at 6.9 percent in the three months through September, helped by a services sector that grew close to to 8.4 percent. That was marginally better than expected, but the worst turnout since the first quarter of 2009.

With the exception of that one quarter at the start of 2009, when the world was in the depths of the financial crisis, Chinese growth has always been at least 7.5 percent since 2000 — peaking at just under 15 percent in the summer of 2007. The Stoxx600, Europe's benchmark index, opened lower, before heading into positive territory.

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One of the reason for the Stoxx600 rise — Deutsche Bank. John Cryan’s clearing of the deck continues, and investors like the look of his latest move. Deutsche Bank's stock rose more than 3.5 percent at the open, the most in two weeks. Late Sunday, the bank unveiled what amounts to the biggest management shakeup in more than a decade as the new boss prepares to scale back the trading empire built by his predecessor. Cryan replaced several of former CEO Anshu Jain's deputies, including Colin Fan, co-head of the investment banking and trading unit.

Cryan will announce his strategy for the bank at the end of October. 

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The euro held steady after ECB Governing Council member Ewald Nowotny signaled that policy makers may not decide any time soon whether to extend QE beyond September 2016. Nowotny was speaking in interview with Puls Biznesu newspaper. He also said the euro’s appreciation shows that “stability of the euro is not questioned” in the markets, and the currency is perceived as a haven. Speaking ahead of the better-than-expected results for Chinese growth, Nowotny said, “One shouldn’t over-estimate impact of slowdown in China on expansion in euro area.” The euro pared most of its gains against the U.S. dollar to trade little changed at 1.1350 late morning.

Ryan Chilcote is a presenter on Bloomberg TV. Follow him on Twitter @RyanChilcote

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