Risks remain from potential escalation of the Iran conflict, which could worsen China's economic slowdown by driving oil prices even higher. Weak consumer confidence also threatens to delay recovery. Chinese stock markets may face pressure, particularly in consumer and property sectors. Crude oil prices could remain volatile, pulled by both supply fears and weakening demand.
What to Watch
- Further data on industrial output and retail sales to gauge the depth of the downturn.
- Any escalation of the Iran conflict that could disrupt crude flows and reshape global trade routes.
- Monetary policy moves from the People's Bank of China to support growth.
- Crude oil price volatility as supply fears and demand weakness pull in opposite directions.
- Signs of stabilisation in China's property and consumer sectors.
Sources: Source 1
