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China's retail sales surge dives to 16-year minimum
On Wednesday, China posted shockingly weaker surge in retail sales as well as industrial output for April, thus increasing pressure on the Chinese cabinet to roll out more stimulus because the trade conflict with America escalates.
Clothing sales headed south for the first time since 2009, dropping a hint that Chinese consumers were getting more worried about the Chinese even before an American tariff lift on Friday increased stress on China’s struggling exporters.
In April, total retail sales headed north by up to 7.2% from 2018, which is the slowest tempo since May 2003, as data from the National Bureau of Statistics revealed. The given outcome it undershot March's reading of 8.7% as well as estimates of 8.6%.
According to the data, customers were currently starting to cut back spending on everyday products, in particular, cosmetics and personal care, while proceeding with shunning more costly items such as vehicles.
In general, Chinese data for April mostly indicated a loss of momentum, following shockingly positive March results had backed hopes that the Chinese economy was gradually getting back onto firmer footing and would need less policy support.
In April, surge in industrial output speeded down more than anticipated to 5.4% on-year, rebounding from a 4-1/2-year maximum of 8.5% in March that some experts had thought was driven by seasonal as well as temporary factors.
Experts had predicted output would tack on by 6.5%.
Motor vehicle output dived by 16% as demand decreased, with sedan output heading south by about 18.8% that appears to be the steepest dive since September 2015. This week industry data disclosed that car sales went down by 14.6% in April, which happens to be the 10th losing month in a row.
US Advance quarterly GDP is announced on April 29 at 15:30 MT time.
The US dollar is heading for the best week in three. The market sentiment is mixed as optimism about the global economic recovery was outshined by increasing tensions between the West and China.
Read a short market wrap before trading today!
The United States will publish the non-farm employment change, also known as non-farm payrolls or NFP at 15:30 MT (GMT+3) time on August 6.
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