Having fun cheaply?

Daily update

The ending of the lunar new year holiday has people focusing on China’s domestic demand. The number of trips rose above pre-pandemic levels, but early indications are that the amount of money spent per trip was subdued. As with developed economies, China’s consumers want to see friends and family, and have fun. Unlike developed economies, there seems a bias to having fun cheaply.
China’s domestic consumption is not especially important to developed economies although it can matter to companies (making goods in China for the domestic market). The US raised one global concern—a fear China will dump goods it cannot sell at home on other economies, selling at a loss rather than not selling at all. Anti-dumping is a rare economically valid reason for trade tariffs.
The US is off celebrating former US President Washington’s birthday, allowing for reflection on the recent data flow. Bond markets have exhibited some volatility as price data moved about under the January effect. This volatility is not calmed by Federal Reserve Chair Powell’s comments.
Europe is very quiet. One of the many European Union officials with the title “president” is to stand for a second term. The complete indifference of markets perhaps communicates something about the importance of the role.