China’s economy, the world’s second-largest, grew 6.7 percent in the third quarter of 2016, meeting expectations and remaining unchanged from the previous period, the Chinese government confirmed on Wednesday. Following the report analysts expect the People’s Bank of China to keep interest rates stable for the rest of the year while it focuses on gaining control over the region’s recent property boom and the need for supply-side structural reform, without which economists are worried that the country’s economy will find itself lagging once again.
Additional data out on Wednesday showed that Chinese industrial output grew 6.1 percent on-year, slightly below estimates, while retail sales were up 10.7 percent, slightly better than expected.
Surprises Unveiled
Expectations for a Fed rate hike in December fell nearly five percent on Tuesday as a report on U.S. consumer prices showed that inflation moderated at 2.2 percent in September. Some surprises were also uncovered in Europe yesterday as British lawmakers seemed less willing to take a hard line on Brexit proceedings, as compared to British Prime Minister Theresa May. The pound rallied one percent on the news, hitting $1.2291, a break from its recent downslide.
The dollar remained steady against the yen on Wednesday at 103.82. Oil prices continued to rise as data showed an unexpected draw in U.S. crude inventories last week and a decline of production in China. The slightly weaker dollar also contributed to this pricing. Brent crude was up 47 cents per barrel to $52.15, while U.S. crude was also up 47 cents to $50.76.