18 Jan 2016
A key and busy day ahead in China - TDS
FXStreet (Guatemala) - Analysts at TD Securities explained that Tuesday is a busy day for China data releases, with Q4 GDP and December IP and retail sales.
Key Quotes:
"For Q4 GDP we expect 6.9% Y/Y, in line with the consensus, but with services and consumption underrepresented in the high-frequency space, we see modest upside, with a seven-handle quite possible.
For IP we expect 6.0% Y/Y, in line with the consensus, and down from the prior 6.2%. Caixin was soft and better predicted this sector's decline compared with the official PMI. But the Chinese economy is slowly rotating, and it’s the retail sales number that should be looked at more closely. Here, we expect the number to come out at 11.4% Y/Y, a touch higher than the consensus 11.3%, as wealthier households increasingly prefer to consume services."
Key Quotes:
"For Q4 GDP we expect 6.9% Y/Y, in line with the consensus, but with services and consumption underrepresented in the high-frequency space, we see modest upside, with a seven-handle quite possible.
For IP we expect 6.0% Y/Y, in line with the consensus, and down from the prior 6.2%. Caixin was soft and better predicted this sector's decline compared with the official PMI. But the Chinese economy is slowly rotating, and it’s the retail sales number that should be looked at more closely. Here, we expect the number to come out at 11.4% Y/Y, a touch higher than the consensus 11.3%, as wealthier households increasingly prefer to consume services."