Last week, Finance Minister Lou Jiwei said last that 6.5% expansion wouldn’t be a “big problem”, presumably to give the markets some expectations and along with that taper volatility. But to set 6.5% in the speech, a figure lower than usual isn't something that China really does. Awkward behaviour, especially as results came out today that China expanded 7.5 percent in the three months to June 30. Perhaps they are trying to artificially drive a rally by pricing in lower expectations with a better than expected results - or to assuage amidst otherwise bog-standard results. I don't think that these latest results will see markets rally, but post some short term gains. This may bode well for the AUSUSD also, something that I will come to later in the week after Bernanke's speech on Wednesday.
More to come on EM gains, European, APAC and US gains.
More to come on EM gains, European, APAC and US gains.
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