Whocouldanode? Chinese GDP managed (thanks to record-breaking credit creation and QE-lite) to beat expectations of +7.2% and come in at +7.3% (still its slowest growth since April 2009). Notably this was the biggest decoupling from Bloomberg’s high-frequency economic data forecast (i.e. real data) since May 2010. Despite weakness in Cement and Steel output, Industrial Production also managed to beat and actually improve (another miracle). Retail Sales missed expectations, rose only 11.6% YoY – its weakest since Feb 2006. Initial kneejerk is a lift in USDJPY, AUDJPY, TSY yields, and S&P and NKY futures… though not as large as some had hoped…
Chinese GDP beat, falls to slowest since April 2009, and decouples from Bloomberg’s “real data” estimate by themost since May 2010…
Industrial production rose and beat – breaking any historical correlation with Steel and Cement industries…
For the 5th month of the last 6, Retail Sales missed and dropped to the slowest growth since feb 2006…
The initial reaction – USDJPY jerked higher, S&P Futs followed along with TSY yields…
Charts: Bloomberg
h/t @M_McDonough
via Zero Hedge http://ift.tt/1uwPBbh Tyler Durden