The Weekly BriefContributor Global Markets Insights Strategy Team
Investors have been looking closely at the Chinese economy for signs that the recent stimulus will take hold and support global growth.
Following a rebound in the March manufacturing Purchasing Managers’ Index, there was further positive news regarding activity in China. Real GDP growth for the first quarter came in at 6.4% year on year, while retail sales and industrial production for March also beat expectations. This set of data serves as evidence that the stimulative policy shift from the Chinese authorities is starting to filter through to the real economy. While the magnitude of stimulus is not likely to be as large as in previous years, it is encouraging that the measures so far are helping the domestic economy. This could also be positive for the European economy, which had been hurt by the intentional slowdown in China, as it could now benefit from this rebound.
China stimulus appears to be feeding through to the economy
% change year on year, industrial production is a 3-month moving average
This document is a general communication being provided for informational purposes only. It is educational in nature and not designed to be taken as advice or a recommendation for any specific investment product, strategy, plan feature or other purpose in any jurisdiction, nor is it a commitment from J.P. Morgan Asset Management or any of its subsidiaries to participate in any of the transactions mentioned herein. Any examples used are generic, hypothetical and for illustration purposes only. This material does not contain sufficient information to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any securities or products. In addition, users should make an independent assessment of the legal, regulatory, tax, credit, and accounting implications and determine, together with their own professional advisers, if any investment mentioned herein is believed to be suitable to their personal goals. Investors should ensure that they obtain all available relevant information before making any investment. Any forecasts, figures, opinions or investment techniques and strategies set out are for information purposes only, based on certain assumptions and current market conditions and are subject to change without prior notice. All information presented herein is considered to be accurate at the time of production, but no warranty of accuracy is given and no liability in respect of any error or omission is accepted. It should be noted that investment involves risks, the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Both past performance and yields is not a reliable indicator of current and future results.
J.P. Morgan Asset Management is the brand for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. This communication is issued in the United Kingdom by JPMorgan Asset Management (UK) Limited, which is authorized and regulated by the Financial Conduct Authority, Registered in England No. 01161446. Registered address: 25 Bank Street, Canary Wharf, London E14 5JP.