China: Likely to print strong data sets throughout - Nomura

FXStreet (Delhi) – Research Team at Nomura, expects the Chinese industrial production growth (out on 19 January) to moderate to 5.9% y-o-y from 6.2% in November, as we believe the rebound in November is unlikely to last, although some stabilisation is likely.

Key Quotes

“Given the stronger-than-expected December trade data, we see risks to our IP forecast as now skewed to the upside. We believe retail sales growth may rise to 11.9% y-o-y from 11.2% in November, helped both by higher inflation and domestic consumption. We expect fixed asset investment growth to tick up to 10.3% y-o-y (ytd) in December from 10.2% in November, possibly driven by infrastructure investment.”