Welcome to Tuesday!
Chinese economy loses momentum following policymakers’ clampdown on debt risks
In April, China's surge took a step back right after a surprisingly sturdy start to 2017, as factory output to investment to retail sales all shrank because authorities clamped down on debt risks, trying to stave off a potentially damaging effect to the Chinese economy.
Waking up to the ongoing threat posed by relatively cheap credit-fueled stimulus since the 2008-9 global financial meltdown, the country’s government has kept tightening the screws on speculative financing for the last several months.
Monday’s data illustrated the broad economic effect of these regulatory curbs, with April’s below-forecast factory output as well as fixed-asset investment in the first four months of 2017, reinforcing evidence of a declining manufacturing sector and also slowing momentum in the world's number two economy.
Financial experts surveyed by Reuters had foreseen factory output would inch up by 7.1% in April, and also tipped fixed asset investment to ascend 9.1% in the period January-April.
In July, Britain's inflation rate rallied for the first time in 2018, thus leaving many UK households feeling quite squeezed by prices, soaring at nearly the same tempo as their wages…
On Friday, the evergreen buck rallied versus its counterparts after data disclosed that the American economy generated more jobs than anticipated In October, thus backing the Fed’s case to proceed with gradual rate lifts…
On Tuesday, gold rallied because uncertainty over the latest developments in Britain’s departure from the EU backed safe haven demand and traders looked ahead for American inflation data to underpin the Fed’s pledge to remain on hold…