China’s fragile growth could negatively impact companies with exposure to the country, such as Apple, major chipmakers, and luxury retailers as they release their quarterly results in the coming weeks.
Wall Street is preparing for a significant decline in second-quarter U.S. earnings, with profit margins expected to be affected by U.S. inflation and weaker spending. U.S. and European companies with ties to China could also suffer due to the sluggish growth of the Chinese economy, which has lost momentum after the COVID-19 pandemic.
China’s lackluster economic figures have had a negative impact on its stock market, with the Shanghai Composite Index only seeing a modest 2.6% increase in 2023, compared to the 18% increase of the S&P 500.
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