Danske Bank analysts note that the Chinese data disappointed overnight as industrial production growth dropped to a new low at 4.4% y/y (consensus 5.2% y/y, previous 4.8% y/y).
“Retail sales were also lower than expected at 7.5% y/y (consensus 7.9% y/y, previous 7.6% y/y). It underlines that the world’s biggest growth engine continues to see downward pressure on growth.”
“China’s premier Li Keqiang said in an interview that it is ‘very difficult’ for China’s economy to grow at 6% or more. We expect more stimulus to be announced from China in coming months.”