After what has been a solid month for equities and bond investors, month end flows have probably play their part in the price action overnight, US equities have lost momentum, UST have led a rise in core global bond yields and the USD is stronger. US and European inflation releases favoured the notion the Fed and ECB are done with their respective tightening cycles.
China Economic Update – February 2023
COVID’s rapid spread may allow a faster economic rebound in 2023
China’s sudden abandonment of its zero-COVID policies in December led the country into a disruptive transition period before what is likely to be an economic rebound across 2023. A faster-than-expected spread of the virus may reduce the length of the transition period, providing upside risk to our growth forecasts. That said, the strength of the rebound may depend on consumer confidence – particularly the willingness to spend the savings built up during zero-COVID.
For further details, please see the China Economic Update (February 2023)