Chinese economic data beat expectations, with industrial production accelerating and retail sales returning to growth for the first time since the coronavirus pandemic wreaked havoc – Market Today: China reports better than expected.
Investors are still optimistic that the global economic recovery remains on track, and with markets having already priced in a lot of positive news flow, it is important for the health of the stock market rally that economic data affirms this.
Recently, market participants got a bit of a break from the US-China trade war. In recent weeks, US President Trump seemed increasingly occupied with domestic issues.
However, it might end up being just the calm before the storm, as Trump might ramp up his anti-China rhetoric ahead of the November presidential election.
Meanwhile, European investors are hopeful that the US Federal Reserve will boost markets at tomorrow´s meeting, after the ECB disappointed with its less dovish than anticipated stance.
EU indices are consolidating at higher levels, but are struggling to gain significant momentum and are facing headwinds from a strong Euro.
Following the ECB´s weak verbal intervention, there is little to stop the currency´s rise and another test of the $1.20 mark is likely to follow soon.
Market Today: China reports better than expected