China looks to be slowing - Nomura
A year where growth consistently surprises to the upside makes it much easier for risk markets to perform, but expectations have now risen and cracks are starting to appear, according to analysts at Nomura.
“The most obvious is China. The 19th National Congress appears to mark a transition to a much stronger will to deleverage the economy. As it happens, recent Chinese growth has disappointed and bond yields have started to rise, possibly reflecting tighter liquidity conditions. Some of this may simply be noise or even a temporary dip (our economist’s base case), but it should challenge the synchronised global growth narrative into year-end.”