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ING's Lynn Song highlighted that China's April economic data revealed a broad-based slowdown in domestic activity. Retail sales, industrial production, and fixed asset investment all fell below expectations, signaling weakening demand and production. The data raises concerns about the sustainability of China's recovery and potential spillover effects on global markets.
This development could weigh on global trade and commodity prices, particularly affecting energy and metal exporters. Traders should monitor how central banks and policymakers respond to the slowdown, as it may influence monetary policy decisions and risk appetite. The Chinese yuan (CNY) and commodities like oil and gold are likely to face volatility.
Investors in the Gulf and MENA region should watch for policy support measures from Beijing, such as fiscal stimulus or infrastructure spending. The key risks now shift to reflationary pressures if supply constraints persist. Market participants should also track upcoming data on manufacturing PMI and consumer confidence for further clues.
