A quick chart before markets receive GDP, industrial production, retail sales and fixed-asset investment numbers from China tomorrow
A quick chart before markets receive GDP, industrial production, retail sales and fixed-asset investment numbers from China tomorrow. Obviously the August data came as a shock and not much improvement is expected tomorrow. In YoY terms Q3 GDP is expected to print at 7.2%, down from 7.5% in Q2, with retail sales and fixed-asset investment also expected to slow to 11.7% and 16.3% respectively. The one bright spot is tipped to be industrial production which is expected to rebound to 7.5% from 6.9% in August. While global growth concerns rattled markets last week, given dovish language from Central Banks and ongoing rumours that the PBoC will cut interest rates near-term, whether strong or weak, it may well me a case of 'risk on' no matter that the outcome tomorrow.
David is a Director of Scutt Partners Pty Ltd and has successfully worked in the financial services markets over the past 12 years with both large and smaller banking groups. He has provided strategic financial analysis for currency and interest...
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