China`s economic data was disappointing which means the economy is still facing strong headwinds. Furthermore, Trade talks are still suspended, but it is expected that Chinese authorities will take further measures to support the economy index.

Last data numbers:
• Industrial Production at 5.4% y/y (Forecast :6.5%) in April.
• Retail Sales at 7.2% y/y (Expected: 8.6%) in April.
• Passenger car sales, released earlier this week, fell by 17% y/y in April, extending the softening momentum that is evident since the second half of 2018.

However, the markets are still seeking trade problem solution through at the G20 summit in Osaka on 28 and 29 June.

Chinese currency depreciation increased due to uncertainty about the future of the Trade talks. The 7.00 level is still very important. Last period, Central Bank supported the renminbi.

 

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Christos Nikolaou

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