What happened? On Monday, February 21, Russian President Vladimir Putin signed decrees recognizing the sovereignty of the Donetsk and Lugansk People's Republics…
China’s industrial output surge dives to 17-year minimum
For the first two months of 2019, surge in China's industrial output went down to a 17-year minimum, thus indicating further weakness in the world's number two economy. It will most probably provoke more support measures from the Chinese cabinet.
However, a mixed pack of key data on Thursday also demonstrated that property investment is ascending, while overall retail sales turned out to be sluggish, although steady, dropping a hint that the Chinese economy isn’t in the midst of a steeper deceleration at present.
China is increasing assistance for the national economy because 2019 surge seems braced for hitting 29-year minimums, although support measures are taking time to come into effect. The vast majority of experts are assured that activity might not convincingly stabilize until the middle of 2019.
The previous week the country’s premier Li Keqiang announced hundreds of billions of dollars in extra tax trims as well as infrastructure spending, even as China’s statesmen told they wouldn’t resort to huge stimulus like in the previous years that produced swift recoveries in this Asian country and firm reflationary pulses around the globe.
The latest data should partially soothe worries regarding a steep deceleration at the beginning of 2019. However, the near-term outlook still seems dismal.
By the way, Capital Economics along with others stressed that infrastructure investment hasn’t become better as much as hoped after the Chinese cabinet started a fast-tracking road as well as rail projects in 2018, thus increasing the risk of a milder-than-anticipated rebound in construction when work continues in warmer weather.
As a matter of fact, industrial output went up by 5.3% in January-February, which is less than anticipated and also the slowest tempo since early 2002. Surge had been anticipated to speed down to 5.5% from December's reading of 5.7%.
Hong Kong’s HK 50 index rose and the Chinese yuan edged up as traders assess the outcome of the first virtual meeting between US President Joe Biden and Chinese leader Xi Jinping.
A selloff in stocks stopped. S&P 500 has reversed up from the 100-day moving average. It should be the perfect time to buy the index.
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.
Every week we expect many interesting events that can shake the market.