Economic Data From China Drives Market Lower
MarketPulse | Apr 16, 2021 12:49AM ET
A wrath of Chinese economic data mostly came in below expectations and that along with heavy global bond yields was enough to drag sentiment down. China’s CSI 300 index extended its slide following the mixed economic data. S&P 500 and NASDAQ futures slid slightly but are still near record high territory. The Chinese yuan was unfazed by the economic data that mostly came in-line with expectations.
China’s domestic outlook is looking good following a better-than-expected retail sales reading. The March Retail Sales YTD year-over-year reading surged by 33.9%, higher than the 31.7% consensus estimate and 33.8% prior reading. China’s economy expanded by 0.6% in the first quarter, lower than the 1.4% estimate, and much slower than the upwardly revised 3.2% prior reading. The headline GDP year-over-year record print of 18.3% was a slight miss of the 18.5% estimate, but still a record when compared to the 15.3% rate seen in 1993.
It appears that the normalization of policy is starting to show some slowness across industrial production and property investment. The March reading of Industrial Production disappointed with a worse-than-expected decline from 35.1% to 24.5%.
China’s growth will trend lower going forward, but this mixed reading will likely prevent policymakers from tightening too quickly.
h2 Gold/h2Gold prices drifted slightly lower following the mixed Chinese data but still is poised to finish above its recent trading range. Gold will strictly follow the move in Treasury yields, which means yesterday’s bullish breakout should hold.
Original Post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.