{"id":72305,"date":"2026-09-27T22:38:19","date_gmt":"2026-09-28T02:38:19","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-retreat-as-china-industrial-profits-slow-and-middle-east-tensions-ground-flights\/72305\/"},"modified":"2026-09-27T22:38:19","modified_gmt":"2026-09-28T02:38:19","slug":"global-markets-retreat-as-china-industrial-profits-slow-and-middle-east-tensions-ground-flights","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-retreat-as-china-industrial-profits-slow-and-middle-east-tensions-ground-flights\/72305\/","title":{"rendered":"Global Markets Retreat as China Industrial Profits Slow and Middle East Tensions Ground Flights"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_86 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-retreat-as-china-industrial-profits-slow-and-middle-east-tensions-ground-flights\/72305\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-retreat-as-china-industrial-profits-slow-and-middle-east-tensions-ground-flights\/72305\/#China_Industrial_Growth_Eases_Amid_Subdued_Demand\" >China Industrial Growth Eases Amid Subdued Demand<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-retreat-as-china-industrial-profits-slow-and-middle-east-tensions-ground-flights\/72305\/#Aviation_and_Geopolitics_Middle_East_Flights_Grounded\" >Aviation and Geopolitics: Middle East Flights Grounded<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-retreat-as-china-industrial-profits-slow-and-middle-east-tensions-ground-flights\/72305\/#Nissan_Strategy_Localization_and_Trade_Barriers\" >Nissan Strategy: Localization and Trade Barriers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-retreat-as-china-industrial-profits-slow-and-middle-east-tensions-ground-flights\/72305\/#Commodities_and_Currencies_Silver_and_CAD_Retreat\" >Commodities and Currencies: Silver and CAD Retreat<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-retreat-as-china-industrial-profits-slow-and-middle-east-tensions-ground-flights\/72305\/#Defense_Industry_Ramps_Up_Missile_Output\" >Defense Industry Ramps Up Missile Output<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>China\u2019s industrial profit growth slowed to 15.7% YTD in August<\/strong>, down from <strong>17.6%<\/strong> in July, as weak domestic demand and rising energy costs offset gains in high-tech manufacturing.<\/li>\n<li><strong>Cathay Pacific (<a href=\"\/stock\/0293\">0293<\/a>) suspended all passenger flights to Dubai and Riyadh until January 31, 2027<\/strong>, citing escalating regional conflict and persistent airspace restrictions.<\/li>\n<li><strong>Nissan (<a href=\"\/stock\/NSANY\">NSANY<\/a>) Chairman Christian Meunier<\/strong> stated there is &quot;little chance&quot; the US market will open to Chinese automakers in the next five years, while targeting <strong>80% localization<\/strong> of US manufacturing by 2030.<\/li>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/metal\/silver\" data-internallinksmanager029f6b8e52c=\"5\" title=\"silver price today\">Silver<\/a> spot prices plunged nearly 3% to $62.40\/oz<\/strong>, breaking key support levels as a widening US-Canada rate differential pushed the <strong>Canadian dollar to a multi-month low of 1.4150<\/strong> against the greenback.<\/li>\n<li><strong>The US defense industry is moving to quadruple production of Patriot missiles<\/strong>, following a White House meeting between the Trump administration and major contractors like Lockheed Martin (<a href=\"\/stock\/LMT\">LMT<\/a>) and RTX (<a href=\"\/stock\/RTX\">RTX<\/a>).<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"China_Industrial_Growth_Eases_Amid_Subdued_Demand\"><\/span>China Industrial Growth Eases Amid Subdued Demand<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Profits at China&#39;s major industrial firms grew <strong>15.7% year-on-year<\/strong> in the first eight months of 2026, reaching <strong>5.27 trillion yuan ($785.9 billion)<\/strong>. While the cumulative growth remains in double digits, the pace has decelerated from the <strong>17.6%<\/strong> gain reported for the January-July period.<\/p>\n<p>The National Bureau of Statistics (NBS) noted that while high-tech sectors and AI-related manufacturing continue to show strength, the broader economy is struggling with <em>contracting manufacturing activity and high energy costs<\/em>. Analysts expect the Chinese government may need to introduce further stimulus to support corporate earnings through the remainder of the year.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Aviation_and_Geopolitics_Middle_East_Flights_Grounded\"><\/span>Aviation and Geopolitics: Middle East Flights Grounded<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Cathay Pacific (<a href=\"\/stock\/0293\">0293<\/a>) has extended its suspension of passenger services to <strong>Dubai (DXB)<\/strong> and <strong>Riyadh (RUH)<\/strong> through <strong>January 31, 2027<\/strong>. The airline cited the &quot;latest developments&quot; in the Middle East, including recent hostilities that have prompted several international carriers to delay their return to the Gulf region.<\/p>\n<p>The suspension reflects a broader trend of operational uncertainty; <strong>Air Canada<\/strong> has similarly pushed its regional resumption to mid-January 2027, while <strong>Finnair<\/strong> has delayed services until March. While passenger flights are grounded, Cathay Cargo has yet to set a definitive timeline for resuming freighter services to these hubs, further complicating regional logistics.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Nissan_Strategy_Localization_and_Trade_Barriers\"><\/span>Nissan Strategy: Localization and Trade Barriers<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Nissan (<a href=\"\/stock\/NSANY\">NSANY<\/a>) Americas Chairman <strong>Christian Meunier<\/strong> expressed skepticism regarding the entry of Chinese automakers into the US market, predicting the door will remain closed for at least the next five years. Meunier emphasized that <strong>US auto tariffs<\/strong> have accelerated Nissan&#39;s push for localization, with a goal of reaching <strong>80% US-based manufacturing by 2030<\/strong>.<\/p>\n<p>The automaker has successfully reduced its US dealer supply to approximately <strong>50 days<\/strong>, a significant drop from the <strong>100-day<\/strong> inventory levels seen in January 2025. To meet rising demand for the <strong>2027 Rogue hybrid<\/strong>, Nissan is considering adding third production shifts at its US assembly plants, which could nearly double its domestic output.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Commodities_and_Currencies_Silver_and_CAD_Retreat\"><\/span>Commodities and Currencies: Silver and CAD Retreat<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The spot price of <strong>Silver dropped nearly 3% to $62.40\/oz<\/strong> on Monday, following a broader sell-off in precious metals. The decline was mirrored in China, where the <strong>CSI SSH <a href=\"https:\/\/stockmarketwatch.com\/metal\/gold\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">Gold<\/a> Equity Index<\/strong> fell over <strong>3%<\/strong>, as investors reacted to cooling industrial data and rising global bond yields.<\/p>\n<p>In the currency markets, the <strong>Canadian dollar (CAD)<\/strong> weakened to <strong>1.4150 per US dollar<\/strong>, its lowest level in over a month. The decline is driven by a widening interest-rate differential, as the <strong>Bank of Canada<\/strong> holds rates at <strong>2.25%<\/strong> while the <strong>US Federal Reserve<\/strong> signals further tightening to combat persistent inflation.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Defense_Industry_Ramps_Up_Missile_Output\"><\/span>Defense Industry Ramps Up Missile Output<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The US defense sector is under pressure to dramatically increase production of critical munitions, including <strong>Patriot and Tomahawk missiles<\/strong>. Following a high-level meeting at the White House, the Pentagon is urging suppliers to double or even quadruple output to replenish stockpiles depleted by ongoing global conflicts.<\/p>\n<p>Major contractors, including Lockheed Martin (<a href=\"\/stock\/LMT\">LMT<\/a>) and RTX (<a href=\"\/stock\/RTX\">RTX<\/a>), have reported expanding factory floors and increasing spare-parts inventories. However, industry leaders continue to call for <em>long-term funding commitments<\/em> from Congress to ensure the technical feasibility of such an aggressive manufacturing ramp-up.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways China\u2019s industrial profit growth slowed to 15.7% YTD in August, down from 17.6% in July, as weak domestic 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