Beijing : Global markets faced pressure this week as renewed concerns over China’s trade performance and fading enthusiasm around artificial intelligence stocks unsettled investors.
China’s exports dropped by 1.1 percent in October compared with the same period last year, marking the worst decline since February. The fall came after an 8.3 percent rise in September, surprising economists who had expected modest growth. Analysts say the drop signals slowing global demand and ongoing weakness in China’s domestic economy.
Imports also showed little improvement, reflecting soft consumer spending and continued stress in the country’s property sector. Economists warn that China’s ability to rely on exports to drive growth is shrinking, while domestic demand remains sluggish despite government stimulus measures.
The export decline comes at a time when investors are also rethinking their optimism about the technology sector. The surge in AI-related stocks that boosted markets earlier this year has started to cool, with many traders now taking a more cautious approach.
Markets in Asia and Europe ended the week mixed. Chinese shares managed to post small gains, suggesting some investors expect new government measures to support growth. However, broader sentiment remains weak, with concerns that slower Chinese demand could affect commodity prices and manufacturing output in other parts of the world.
In the United States, the dollar held steady as traders weighed signs of a cooling job market and the possibility of future Federal Reserve rate cuts. The combination of weak Chinese trade data and shifting expectations around interest rates added to market uncertainty.
Economists believe that China’s next move will be crucial. Many are watching to see whether Beijing introduces new policies to boost consumer confidence and stabilize trade. Others point to the need for deeper reforms to strengthen the country’s economic foundations rather than relying on short-term measures.
As investors look ahead, they are expected to monitor China’s upcoming inflation, retail, and industrial data closely. Any further weakness could signal a tougher global outlook, especially for countries and companies that depend heavily on Chinese demand.