📆 Monday, July 17
► Global stocks, especially miners and luxury goods companies, have fallen due to mixed data from China and anticipation of upcoming corporate earnings results. The expectations that the Federal Reserve is not changing course for now is also negatively affecting the market.
► China's industrial production saw a year-on-year increase of 4.4% in June 2023, outperforming market forecasts of 2.7%, largely driven by a boost in manufacturing activity and a rebound in mining production. Despite a better-than-expected rise in fixed asset investment for H1, retail sales growth fell short of the estimated 3.2%, recording only a 3.1% increase in June. Unemployment rates revealed a stark contrast between cities (5.2%) and young people aged 16 to 24 (21.3% (!) – a new record).
► China's Q2 GDP also grew by 6.3%, which is higher than Q1's 4.5% growth, but lower than the market estimate of 7.3%. This below-par performance might intensify pressure on policymakers to initiate a larger stimulus for the slowing economy. While service sector activities contributed significantly to a 5.5% economic expansion in H1, 2023, very high youth unemployment continues to be a concern. Despite China's modest economic outlook after missing 2022's target, the National Bureau of Statistics remains optimistic about meeting the full-year growth target of around 5%.
Subscribe to see more
