In this note, we will go through regional growth divergences and how these impact traditional assets such as currencies and equities. We will analyze central banks’ likely next steps, and review cryptocurrency tactical indicators after the weekend’s price pump.
China and global demand
Chinese economic data mostly beat economists’ expectations for September: retail sales came at 5.5% YoY (vs 4.9% YoY expected, and up from 4.6% YoY in August). This and earlier data from the Golden Week paint a picture of a recovering consumption, especially for domestic services.
However, Mainland and Hong Kong equity markets were among the worst regional equity performers week-on-week, down by close to 4% (the week the data was released).