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All is well - Chinese data says so

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  • A quick barrage of data from China gave stronger industrial production, but slightly weaker retail sales, suggesting strength on the external side of the economy is still important. Inflation contained few surprises - food price inflation (politically sensitive) rose to 5%.
  • Consumer sentiment slipped again in Japan. Consumers are doubtless sensitive to the increase in food and energy prices a weaker yen has helped to produce. Broad money supply rose 3%, with corporate cash hoarding still in evidence.
  • A trio of Fed comments have pointed to September as the date for scaling back bond purchases. The traditionally dovish Fed President Evans, and Fed Presidents Pianalto and Fisher all made mention of September in comments and interviews yesterday.
  • French industrial production is due today (President Hollande sees a fragile recovery in the French economy) �€“ with the tone of Euro industrial production being generally better of late. UK trade data is unlikely to show any rebalancing, and US wholesale trade is due.

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