Analysts at Brown Brothers Harriman noted that China is expected to release industrial production and retail sales data over the weekend.

Key Quotes:

“Industrial output is expected to have slowed. Part of this may be the Lunar New Year, but the underlying trend is weaker in any event. Retail sales, on the other hand, are expected to remain firm near 11% year-over-year.

This is important as it shows Chinese consumption is not adversely impacted by the decline in the equity market. A small fraction of Chinese households own stocks and equities make up a small fraction of household net worth. This is to say that the wealth effect is less than say the United States.”

Analysts at Brown Brothers Harriman noted that China is expected to release industrial production and retail sales data over the weekend.

(Market News Provided by FXstreet)

By FXOpen