China’s GDP lowest reading since Q1 2009 | Current Sentiment

Jarratt Davis

Special Consultant to the FPA
There is no trade call for the session. Today in the Asian session we had Chinese GDP release. There is no tier 1 data due to be released during today’s London session.

Current Sentiment

The main release in the Asia-Pacific session was GDP data from China. As expected GDP for Q1 2016 fell to a 7 year low at 6.7%, although this is the lowest reading since Q1 2009, this is within the Chinese government’s target growth between 6.5%-7% for 2016. China’s financial markets have calmed since the volatility seen at the start of the year, increased fiscal measures throughout Beijing and easing from the PBoC are believed to be supporting China’s economy with many economists expecting a steady recovery from China over the course of the year.

Alongside China’s GDP release was March’s data for Industrial Production and Retail Sales. Industrial Production y/y beat estimates at 6.8% vs expected 6.0%. Retail Sales y/y printed at 10.5% above expectations of 10.2%.

Later in the day we have Canadian Manufacturing Sales and US Prelim UoM Consumer Sentiment which were covered in the weekly risk events video here.

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