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Morning Market Roundup: Chinese Econ Slump, Russia Joins WTO, Boeing Scores Again

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Here’s what’s important in the business world this morning:

China: China's trade growth plunged in June, hurt by weak U.S. and European demand and a Chinese slowdown, with a potential impact on economies as far-flung as Africa and Australia.

Import growth fell by half from May's level to 6.3 percent, data showed Tuesday, as factories facing weak foreign orders cut purchases of raw materials and domestic demand softened despite stimulus efforts. Export growth declined to 11.3 percent from May's 15.3 percent.

Growth in the world's second-largest economy has tumbled to its lowest level since the 2008 global crisis due to anemic export demand and government efforts to cool overheating and inflation. That is bad news for companies and investors that were looking to relatively strong Chinese growth to shore up global demand as the United States and Europe struggle.

China's economic growth fell to 8.1 percent in the first quarter and data due out this week are expected to show it fell as low as 7.3 percent in the second quarter. Analysts expect a rebound later this year following two rate cuts since early June.

Russia: Russia's parliament has ratified an agreement to join the World Trade Organization.

Russia is the largest economy outside the global trade organization. It has spent 18 years trying to negotiate its entry into the body. But thousands of Russian businesses are wary that the low import duties and caps on subsidies that are a condition of joining the WTO will hurt their businesses

Activists including several dozen Communist Party deputies staged a protest outside the Duma Tuesday morning to protest Russia's accession.

Members of Communist faction of parliament hold banners that read: "WTO is a Noose for Russia", left, and "Joining WTO is the way to the Precipice", at right, as they picket outside the parliament headquarters in Moscow (AP Photo/Misha Japaridze)

"The WTO is death to Russia!" one of the posters held by a protester.

Russia's Economic Development Minister Andrei Belousov on Tuesday sought to play down those fears in a debate with lawmakers.

He said that the government would still be able to prop up agriculture and machinery companies with subsidies and businesses would have five to seven years before Russia cuts down duties and subsidies to WTO-assigned levels.

Boeing: Boeing Co. revealed a further large order for its remodeled short-haul 737 aircraft Tuesday while rival Airbus announced its first billion-dollar order at this year's Farnborough Airshow.

Boeing said GE Capital Aviation Services, the commercial aircraft leasing and financing arm of General Electric, has committed to purchasing 75 737 MAX 8s and 25 Next-Generation 737-800s. The deal is valued at around $9.2 billion at list prices but customers rarely pay the full amount when ordering big. The deal is not yet firm, meaning that further hurdles and discussions need to be cleared.

If the deal goes through, it represents the second big order for Boeing's 737 in as many days as the Chicago-based company tries to claw back ground lost to rival Airbus in the short-haul market at a time of economic difficulties around the world. At last year's airshow in Paris - the French capital and Farnborough alternate - Airbus stole a big march on Boeing with its remodeled airplane, the A320neo.

U.S. Futures: U.S. stock futures rose Tuesday as leaders in Europe acted swiftly to shore up Spain and its troubled banks.

Finance ministers agreed early Tuesday on the terms of a bailout, saying that the first $36.88 billion in aid for Spain can be ready by the end of the month. Unemployment in Spain is nearing 25 percent,

Markets have been selling off on the uncertainty surrounding the largest European country to date to seek assistance in the debt crisis.

Dow Jones industrial average futures tacked on 23 points to 12,708. Standard & Poor's 500 futures rose 1.1 points to 1,350.30 and Nasdaq futures gained 4.5 points at 2,610.50.

The Associated Press contributed to this report.

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