Some data from China seems, that they are in the process of slowdown, which are not good news, but others are reaching their potential. But in general, we can see a slowdown of economy in Germany, maybe it comes for China too.The process of economic cycle is key for another expansion and every slowdown is needed.

Early signs for June pointed to weakness. The official and Caixin PMIs indicated a slowdown in momentum – with export order gauges weakening, according to Zerogedge.com

China stocks were down, Yuan flat, and China 10Y bonds 3bps lower in yield as the data hit.

And this is what the data looked like..

  • China Q2 GDP YoY MET EXPECTATIONS rising 6.7% – equal to the weakest since Q1 2009 (against expectations of +6.7% but slowing from Q1 growth of 6.8% YoY)
  • China Retail Sales YoY BEAT rising 9.0% (against expectations of +8.8% and notably up from May’s 8.5% YoY – the lowest since May 2003)
  • China Industrial Production YoY MISS rising just 6.0% – weakest since Dec 2015 (against expectations of +6.5% and well down from May’s 6.8% YoY)
  • China Fixed Asset Investment YoY MET EXPECTATIONS rising 6.0% – the lowest on record (against expectations of +6.0% and down from May’s 6.1% YoY – record low)

This chart is taken from zerohedge.com

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