Today we received economic reports from China which exceeded investors’ expectations. Despite the fact that GDP growth shrank from 6.4 down to 6.2% in the latest report, the level of industrial production marked an increase to 6.3% and retail sales were up at 9.8% in June. It’s possible that the good data won’t have any significant long-term consequences, as an economic slowdown is still expected to remain the trend in China, but in the short term this was good news.
Based on these reports, European stock indices improved, as did the value of the euro itself. The Chinese yuan also strengthened. The American dollar, on the other hand, relaxed and lost its recent momentum.
The stock markets were also boosted by the news that the United States is currently trying to relax its stance on Huawei and find a way to lift some of the restrictions imposed on the Chinese company earlier. This would be a step forward in the trade negotiations between China and the US, which are about to start again soon.
