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 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.
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.
The US Bureau of Economic Analysis will publish Core Personal Consumption Expenditures (PCE) on May 27 at 15:30 GMT+3.
The United States will publish the Preliminary GDP on Thursday, May 26, at 15:30 GMT+3.
The Reserve Bank of New Zealand will publish a monetary policy report and make an update on the interest rate on May 25, at 05:00 GMT+3.