Chinese economic growth slows to 27-year low

In the three months to June, gross domestic product rose 6.2%, down from 6.4% growth in the first three months of the year but in line with economists’ forecasts as the trade war with the US rumbles on.

Other data showed that industrial production rose 6.3% in June compared to a year earlier, up from 5% growth the month before, while retail sales were up 9.8% year-on-year compared to 8.6% growth in May – both ahead of expectations. Economists had been expecting growth of 5.2% and 8.3%, respectively.

Fixed asset investment for June came in at 5.8% growth versus 5.6% the previous month, ahead of economists’ expectations of 5.5% growth.

Oanda analyst Craig Erlam said: "There's no doubt in anyone's minds that the trade war is a major contributing factor here, especially coming at a time when the economy was already in the midst of a slowdown as it transitions away from the heavy investment, export led model to a more sustainable domestically driven one.

"While industrial production, fixed asset investment and, maybe more importantly, retail sales all exceeded expectations, all the focus has been on that lower growth number."