Highlights Over the 2021-22 period, renewable capacity will account for 90% of global electricity-generation additions, per the IEA's latest forecast. This will follow the 45% surge (y/y) in renewable generation capacity added last…
China’s credit data surprised to the downside in April and continues to point to a winding down of last year’s massive stimulus. Aggregate financing declined sharply to CNY 1.85 trillion from CNY 3.34 trillion, lower…
EM stocks, including Chinese equities, tend to perform well during periods of stronger global growth, rising commodity prices and a weaker US dollar. However, a falling dollar index since April has failed to boost Chinese…
Feature Chinese stocks remain in limbo despite robust economic data in April and early May (Chart 1). Onshore equities are pricing in policy tightening risks and a peak in the domestic economic cycle. Meanwhile, a regulatory…
China’s Producer Price Index jumped from 4.4% y/y to 6.8% y/y in April, surpassing expectations of 6.5% y/y and suggesting that inflationary pressures are intensifying in the mainland. The speed of the rise is eye-catching…
China’s trade surplus widened significantly in April, rising to $42.9 billion from $13.8 billion. Exports accelerated by 32.3% y/y from 30.6% y/y in March, marking a positive surprise to the anticipated 24.1% y/y growth…
Recent manufacturing PMI releases suggest that emerging market growth will lag developed market peers in H2 2021. EM underperformance will stem from hard policy constraints and a slowdown in China’s “old…
Highlights US natural gas prices will remain well supported over the April-October injection season, as the global economic expansion gains traction, particularly in Europe, which also is refilling depleted storage levels. China's…
Highlights A slower money and credit growth in China will eventually generate disinflationary pressures by weighing on demand for commodities. The PBoC has shifted its inflation anchor and policy framework to target core CPI and the…
Colombian assets are reeling after President Ivan Duque withdrew a tax reform proposal on Sunday following deadly street protests and political opposition. Finance Minister Alberto Carrasquilla, who designed the bill, resigned on…