China data misses highlight downside risks
China data misses highlight downside risks. Chinese industrial production rose 4.7% y/y/, but fell short of the expected 5.4% y/y rise, while retail sales came in at 7.2% y/y, versus the expected 7.8% y/y. At the same time fixed-asset investment growth slowed to 5.2% in the first ten months of the year, more than anticipated and the lowest reading in comparable data back to 1998. With investment growth slowing down, potential output will also be expanding slower than hoped and even infrastructure investment continues to expand at a solid 4%, today's data round will have reminded markets that the momentum for slowdown is still there, which is bound to hit the labour market at one point, especially if trade tensions with the U.S. are not resolved.