Global growth hotspots and commodities pin 2020 hopes on China

Global growth hotspots and commodities pin 2020 hopes on China

By Erik Norland, Senior Economist, CME Group

Are major economies heading for a cool off?

  • Flatness of yield curves signal slowing growth in US, Europe, Japan
  • Steep yield curves for China, India, and Brazil point to growth
  • Countries projected to grow have been easing monetary policy
  • Pick up in China’s growth could boost commodity currencies
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Commodities eye 2020 China growth prospects

  • Industrial metals, energy prices track China’s growth with a lag
  • China’s pace of growth also impacts AUD, BRL, CAD, and RUB
  • Are Chinese corporate borrowers showing signs of credit stress?
  • Tariff ceasefire, monetary easing might help China pick up pace
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