China's Economy Slows Amid Global Market Shifts

Asia-Pacific markets rose as investors assessed Japan's GDP and Chinese economic data. Japan's Nikkei 225 hit a record high after the country's second-quarter GDP grew 0.3%, exceeding forecasts. China's economy showed signs of slowing down, with retail sales and industrial output missing expectations. Meanwhile, Shein's UK sales jumped 32% in 2024. The S&P 500 notched its third record close, and economist Marc Sumerlin confirmed he's in the running for Fed chair, supporting a big interest rate cut. UBS advised investors to hedge against market volatility.

China's economy slowed in July due to various challenges, including the ongoing trade war with the US, a four-year-long crash in real estate values, and deliberate government efforts to curb factory output. Despite strong export growth, industrial production, retail sales, and investment fell short of expectations. The government attributed the slowdown to trade protectionism and extreme weather, while economists believe that recent measures to boost household spending may not be enough to make a significant difference.

China's economy is showing signs of strain as retail sales and industrial output lose momentum. After six months of steady improvement, the economy slowed down in July due to weakening domestic consumption, the US trade war, and a prolonged property downturn. Retail sales rose by 3.7% year on year, down from 4.8% in June, and fell short of the 4.87% growth forecast. The National Bureau of Statistics maintained that the national economy maintained steady development momentum, but acknowledged that the external environment remains complex and severe. Beijing has made increasing domestic consumption a key policy priority to rebalance the economy and offset the impact of US tariffs.