Roaring exports lift China’s economic growth; violent French protests put pressure on euro and bonds – business live

China's economy grew by 4.5% year on year in the third quarter, driven by strong exports despite weak consumer spending. Factory output outpaced consumer activity, with industrial production increasing by 5.5% in September. However, fixed-asset investment fell 7.2% and property investment dropped by 20.6% over the first nine months.

The country's GDP is on track to meet Beijing's 2026 growth target of 4.5% to 5% without additional stimulus. However, the domestic economy still lags behind the factory sector, with contracting fixed investment and a deep decline in the property sector. China's semiconductor industry is increasingly becoming a price story rather than a volume story.

Asian stock markets saw mixed performances, with Japan's Nikkei falling 0.6%, China's CSI 300 rising 0.2%, Hong Kong's Hang Seng climbing 0.5%, and South Korea's Kospi adding 1.5%. In Europe, violent street protests have put pressure on the euro, while French bonds sold off, causing yields to rise. The yield on the 10-year French government bond increased by more than 6 basis points to 4.842%.

The euro dipped 0.2% to $1.1218 against the dollar. The spread between 10-year German and French government bonds widened by 6.5 basis points, indicating the premium investors demand for French debt compared to the considered ultra-safe German debt.