Weaker consumer spending can dampen demand-driven inflation, to support a more accommodating FED posture.
In the meantime, the Retail sales control group, which excludes volatile components – car sales, building materials and gas stations – is 1%, causing a fall of 1% in January.
Asian market implications: Stronger Fed Rate Cut betting and Wall Street Winsts were the stage for a cheerful Asian session on Tuesday, March 18.
OECD increases China’s growth reasons
On March 17, the OECD issued The interim report of the economic outlook. In particular, the OECD increased China’s growth gates to 4.8% for 2025, an increase of 4.7% while the forecast for 2026 was unchanged at 4.4%.
The OECD, on the other hand, has revised its global GDP for 2025, a decrease from 3.3% to 3.1% and from 3.3% to 3.0% for 2026. Rates were a focal point, with the OECD emphasizing the adverse effects of bilateral rates on Mexico, the US and Canada. It is important that the OECD anticipated rates have a minimal impact on the Chinese economy.
The report of the OECD and the expectations of further monetary and fiscal stimulus of Beijing was demanding the demand for shares in Hong Kong and on fasting the mainland.