Analysts at Wells Fargo point out the global economy continues to sputter along, neither accelerating into a rebound nor decelerating into a recession. On Thursday, Chinese GDP data is due. They expect it to come in just below 6.0% year-over-year.
“China reports its Q4-2019 real GDP growth on Thursday, and we expect it to come in just below 6.0% year-over-year, which would be roughly steady with the previous quarter. Policymakers in China started the year by taking further steps to stimulate the economy, cutting the reserve requirement ratio for banks 50 bps.”
“The combination of a trade détente between the United States and China, as well as continued stimulus support from the authorities will, we believe, keep real GDP growth in China floating in a tight range of 5.75%-6.0% over the next year.”