Ipek Ozkardeskaya
Swissquote Bank Ltd
A stronger-than-expected retail sales data from the US cemented the idea that the US economy remains too strong for the Federal Reserve (Fed) to cut the rates in summer.
Then, China posted a surprisingly stronger-than-expected GDP number this morning, showing that the Chinese economy grew 5.3% in the first quarter, comfortably higher than a 4.8% growth penciled in by analysts. But industrial production missed estimates, house prices continue to fall and consumer spending slowed significantly during March. The CSI 300 slid and Shanghai’s Composite fell almost 1.5%.
A strong Chinese GDP may have not boosted appetite for Chinese stocks, but it sure boosts worries that rising Chinese growth – regardless of where growth comes from – will fuel global inflation and make major central banks think twice about their rate cutting plans. The US 2-year yield is preparing to jump sustainably above the 5% level, the 10-year yield advanced past the 4.60% and the US dollar index extends gains.
In individual stocks, Tesla announced to cut 10% of its global workforce and Apple’s iPhone shipments fell nearly 10% in Q1.
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
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