S&P: China’s FY growth will fall to 5% in 2020
|According to the latest report published by S&P Global Ratings, China’s economic growth is likely to drop to 5% in 2020 amid coronavirus impact.
Key headlines:
China's economic recovery from coronavirus seen in Q3.
Coronavirus economic impact on China seen from Q1.
Coronavirus impact may double questionable China bank loans.
Market implications:
The market mood is seen souring a bit over the last hour, reflected by the drop in the S&P 500 futures and Treasury yields while the Asian equities fade the recovery momentum. Worries over the global economic growth outlook seems to have resurfaced amid downbeat Australian jobs data and PBOC’s expected rate cut.
The risk-off flows are seen lifting the sentiment around the US dollar, as it retest multi-month highs near 99.70 across its main competitors. USD/JPY, meanwhile, regained its upside momentum and refreshed daily highs at 111.50 before reversing to 111.30 levels.
The Aussie remains heavy, printing a new 11-year low near 0.6630 region.
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