Weekly Commentary: Uncertainty

We shouldn’t read too much into one month of weak Chinese Credit data. July's growth in Aggregate Financing (system Credit) slumped to $164 billion, almost 40% below estimates, and down from June’s booming $566 billion - to the slowest expansion since COVID crisis February 2020. July can be a seasonally weak month for lending, following a typical end-of-quarter surge. Analysts are downplaying the significance of July’s slowdown, expecting a seasonal pick up and a boost from last month’s reduction in bank reserve requirements.

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Disclosure: Doug Noland is not a financial advisor nor is he providing investment services. This blog does not provide investment advice and Doug Noland's comments are an expression of opinion ...

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