Reply To: Traders Market Weekly: Market Combustion, Short Squeeze Meets Fed Pivot


Friday’s action followed a slate of data that included weaker-than-expected retail sales, fixed asset investment, and house prices, and better-than-expected industrial production for November.

November Retail Sales 10.1% yr/yr (expected 12.5%; last 7.6%);
November Industrial Production 6.6% yr/yr (expected 5.6%; last 4.6%);
November Fixed Asset Investment 2.9% yr/yr (expected 3.0%; last 2.9%);
November House Prices -0.2% yr/yr (last -0.1%);
November Unemployment Rate 5.0% (expected 5.0%; last 5.0%)ervices PMI 47.6 (last 46.0)

The PBOC made a record monthly net liquidity injection of CNY800 billion and left its 1-yr medium-term lending facility unchanged at 2.50%, as expected.
Reuters also reported that China will be targeting a 2024 budget deficit that is 3% of GDP, down from 3.8% in 2023, but would issue special bonds if more fiscal support is needed. The GDP growth rate target will be around 5%.
China reportedly trimmed the down payment requirement for first-time home buyers to 30% from 35-40%.