Tightening Credit in China and Decline in Eurozone Industrial Production Signal Global Economic Slowdown

One Million Trade - 2024-03-13 10:00:00

The data published for CNY New Loans shows a significant decrease from the previous data, indicating a tightening of credit in the Chinese economy. This could lead to a slowdown in economic activity as businesses and individuals may find it harder to access financing for investment and consumption. This, in turn, could impact global demand for commodities, as China is a major consumer of raw materials. The decrease in Industrial Production for the Eurozone further adds to concerns about global economic growth, as a decline in industrial output can signal a weakening manufacturing sector. This could have ripple effects on trade, as well as on stock markets worldwide.

Currency sentiment: Bearish for CNY and EUR

Sentiment timeframe: Medium to long term