
China’s economy grew at 5.2% in Q2, exceeding expectations and keeping on track for its 5% annual target, easing pressure for additional stimulus.
While this beat economists’ forecasts of 5.1%, it’s lower than Q1’s 5.4% growth. June retail sales slowed to 4.8% year-over-year, missing the expected 5.4% and down from May’s 6.4%.
U.S. Treasury Secretary Bessent expects to meet his Chinese counterpart soon to advance trade discussions.
In May, China unveiled policy measures to support the tariff-hit economy, including rate cuts and liquidity injections.
The stimulus measures have lifted parts of the economy. Both official and private surveys showed an improvement in the manufacturing activity.
U.S. stock futures held steady Monday night after markets gained, with investors focused on upcoming bank earnings and inflation data. Dow Jones Industrial Average futures slipped 0.07%, while S&P 500 futures and Nasdaq 100 futures each fell about 0.1%.
Markets closed positive Monday despite Trump’s threat of 30% tariffs on EU and Mexico starting Aug. 1. The Dow added 0.2%, the S&P 500 rose 0.1%, and the Nasdaq gained 0.3%.
Today’s June CPI report will be closely watched for tariff impacts, with economists expecting 0.3% monthly growth and 2.7% annual inflation. Any surprise increase could unsettle markets that haven’t yet priced in tariff effects.
In the forex market, EURUSD bounced back up near the support level 1.1650 as the dollar weakened. GBPUSD has been trading sideways for the past few hours after dropping 0.49% in yesterday’s trading. USDJPY still shows strength as it nears the 148.00 psychological level.
In the crypto market, bitcoin retreated today after breaking a new record above $123,000 in yesterday’s session. Ether dropped below $3,000 after reaching a high of $3,080 yesterday.
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