FAST FIVE: China Prepares New Stimulus: Will Subsidize Car, Appliance Purchases
According to the report, Chinese officials are drafting measures to bolster sales of objects which have seen a surprising decline in consumer demand, namely cars and electronics.
Notably, the report coincided with the latest GDP data showing a stronger than expected 6.4% expansion in the first quarter.
This is after an 18.5% drop in February and a 4% drop in January, and follow the worst year for Chinese auto sales in decades.
As Bloomberg adds, it's notoriously difficult to own a car in major Chinese cities because of quotas to tackle traffic congestion and air pollution.
It is also a question as to whether the Fed will now be forced to once again reverse its tightening “pause” and resume rate hikes into the second half of 2019.