One day after all three US indexes hit record highs for the first time since December 31, 1999, and global stocks headed for the biggest weekly gain in a month as gains in oil prices bolstered investor confidence, US equity index futures, European stocks and Asian equities are little changed after the Nikkei jumped on the back of a Yen weakness, while China reported disappointing economic data and the PBOC suggested that the flood of new debt is slowing which pushed Chinese stocks higher by 1.6% on hopes of more stimulus.
Ahead of today’s main economic event, the US July retail sales report due out at 8:30 ET, China reported key economic data on retail sales, industrial production and fixed investment, all of which missed expectations. The summary:
Industrial production (IP): 6.0% yoy in July, missing consensus of 6.2%; ; June 6.2% Retail sales: 10.2% yoy in July, missing consensus: 10.5%; June: 10.6% yoy. Fixed asset investment (FAI): 8.1% ytd yoy in July, missing consensus: 8.9%); June yoy: 7.7%. As Goldman noted, July activity data were all below expectations, with the NBS blaming both flooding and warmer weather for the disappointing data. Fewer working days this July compared with last July may also contributed to the weaker activity growth. Sequential IP growth slowed significantly from the high level in June. Export delivery, which was a main support of headline IP growth in recent months, decelerated in July (mom ann export delivery was -0.1% in July, vs 18.7% in June). Domestic demand was weak as well. FAI growth was a major disappointment. Except for the manufacturing sector, FAI growth in almost all sub-sectors moderated: Infrastructure FAI growth was 11.5% yoy in July, vs 21.6% yoy in June, and real estate FAI was 1.2% yoy, vs 3.6% yoy in June.
This post was published at Zero Hedge on Aug 12, 2016.
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