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If you need evidence that the trade war it hitting global growth, look no further than China this morning. World stocks slid and U.S. futures are flat after China posted itsweakest GDP growth in almost 30 years. “You can’t get away from the fact that China is slowing, but it’s not slowing more than we thought,” Michael Metcalfe, head of global macro strategy at State Street Global Markets, told Reuters. “We know that Q4 is going to be a soft patch, but to a degree policymakers are ahead of this, so as long as we don’t have an escalation of the trade war now I think markets can handle it.” That’s a big if.

In the U.S., GM workers will stay on the picket lines while they vote on a tentative agreement reached this week. The month-long strike of about 49,000 U.S. workers has taken a toll on the economy, but even without it American factories are hurting, says BMO senior economist Sal Guatieri. A weaker global economy and trade protectionism are slowing manufacturing, September data shows. Add to that soft retail sales and mixed housing starts/building permits and BMO sees Q3 GDP coming in at 1.9% annualized, slipping to 1.6% in Q4. “Given the increased malaise in manufacturing and incipient softness in the broader economy, the Fed remains solidly on track to reduce rates again on Oct. 30,” wrote Guatieri in a note.