China grows almost at its target rate
- The Chinese government wants growth around 7% this year. The Chinese government's desires have been satisfied. China's growth in the third quarter was 6.9%. Imagine that.
- The composition of China's growth has obviously tilted away from being financial services led, but it does appear to still be services led (industrial production was slower than GDP growth). There is also a tilt towards a rising consumer share of GDP evidenced by the retail sales figures.
- Central bank comments dominate the rest of today, with the ECB's Nowotny on the agenda. Nowotny indicated last week that more measures may be needed to raise inflation to 2%, and then "clarified" with almost indecent haste that this did not mean more quantitative policy.
- There are two Fed speakers on the agenda, but as we can already identify which four FOMC members do not want a rate hike this year, and as the topics for discussion today do not lend themselves to policy comment, this is not likely to matter much to markets.