S&P: Bearish momentum eased a little as we attempt a bounce from Fib 23 per cent retracement support. Chart/Levels from Analyst, Nicole Elliott – Investors Chronicle.


China April data weak Adds to the narrative

Released this morning, retail sales across this vast nation grew by just 7.2 per cent annualised, from 8.7 per cent growth the previous month, and well below trimmed expectations; this was the slowest pace since May 2003 and, for the first time since 2009, the volume and value of clothes sold fell. Industrial production also dropped by more than expected, to 5.4 per cent over the last 12 months from 8.5 per cent in what had been a buoyant March. It was weighed down by a slowing auto industry, where production dropped 16 per cent and vehicle sales fell 14.6 per cent in April, a 10th consecutive monthly decline.

Also released this morning, Statistics Indonesia said April’s trade deficit was the biggest on record, exports falling 13.1 per cent over the year while imports shrank by 6.6 per cent. The Financial Times reports that at $2.5 billion the deficit is the biggest since data was first collected in the 1950s. Adding to this grim Asian picture Japan reorted April machine tool orders fell by 33.4 per cent per annum, the biggest fall since October 2009.

Financial Markets and Political Commentary


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