Market Buzz: Chinese macro data to drive floors

With little news expected from Europe and the US on Monday, macroeconomic data from China is expected to be the main driver of global markets on Monday.

The Asian economic powerhouse is expected to release data on
retail sales, industrial manufacturing and April’s urban investment
figures. “Forecast readings are shadowing forth a slight growth
for all of the free indicators,”
Investcafe analyst Darya
Pichugina said, adding that some analysts are not quite so
optimistic.

“There’s no visible improvement in the macro situation,”
analyst Liu Guangming of Beijing’s Dongxing Securities Co. said,
according to Bloomberg.

China’s overall economic performance has been largely
disappointing: Despite recent trade figures showing an improved
economic climate, fears persist of a downturn in the world’s
second-largest economy.

In April, Chinese exports rose 14.7 percent year-on-year and
imports increased 16.8 percent, both outperforming analyst
expectations, the People’s Republic Customs Administration reported
last Wednesday. However, Citigroup economist Ding
Shuang warned that the improved figures may be reflecting
“over-invoicing [by exporters].”

China also faces a brutal GDP forecast in 2013. In March,
China’s projected GDP growth was cut from 7.9 percent to 7.7
percent, due to weak global export demand. April manufacturing data
was also disappointing, with an HSBC report on the service sector
showing its weakest expansion since August 2011.

Across Asia, Japanese shares are trading higher on Monday, with
the Nikkei 225 gaining 1.24 percent; floors in Hong Kong and
Shanghai are currently closed.

Russian stocks closed Friday’s session in the red, with the RTS
falling 1.54 percent to 1,429.78 and the MICEX declining 0.47
percent to 1,426.25. A sharp cut in economic forecast for Russia
issued by the European Bank for Reconstruction and Development
(EBRD) on Friday could be one of the main reasons the selloff on
Russian floors, Investcafe analyst Anna Bodrova explained. The EBRD
revised its forecast for the Russian economy, predicting GDP growth
of 1.8 percent in 2013 — a sharp downgrade from the previous
forecast of 3.5 percent.

European markets finished higher on Friday, with French stocks
leading the region. The CAC 40 was up 0.64 percent, London’s FTSE
100 added 0.49 percent and Germany’s DAX gained 0.19 percent to
close at a record high of 8,278.59 points.

North and South American markets have traded mixed recently: The
S&P 500 and the Dow Jones remained above key psychological
levels last week — 15,000 and 1,600, respectively. The Nasdaq rose
1.7 percent for the week, and the Latin American Bovespa lost 0.61
percent.

This article originally appeared on : RT