Gross domestic product was 7.5 percent higher during the period from April to June of this year as compared to the same period last year. The metric was at 7.7 percent in the second quarter of 2012. Exports from the Asian nation dropped slightly more than 3 percent last month, representing the biggest loss since 2009.
"The slowdown will force the government to push reforms to help unleash new growth engines," chief economist Xiang Songzuo with Agricultural Bank of China in Beijing told Reuters on Monday.
The yuan slumped to its lowest rate since late June against the world's reserve currency. Officials with the central bank of the Asian nation dropped the daily reference rate by 0.05 percent to kick off the trade week.
Contraction in China during the second quarter marks the ninth of the past 10 quarters when the Asian nation has seen its economy slip, according to Reuters.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.