Fresh data showed that China's GDP expanded by 6.7 percent in the first three quarters of 2018 although it cooled slightly to 6.5 percent in the third quarter, according to China's National Bureau of Statistics.
Jameel Ahmad, Global Head of Currency Strategy and Market Research at ForexTime (FXTM) commented the numbers are moving along modestly. "The overall growth for China is still in line with the government forecast and it is still in line to hit the government target for 2018," he said.
"When you consider that the PBOC [People's Bank of China] and authorities only recently cut the reserved ratio requirements at the beginning of October, it is more likely that they will stay unchanged for now," added Jameel. "But if their market begins to be uncertain over the US interest rate policy, or that China might need some extra stimulus, we could see this change at the turn of 2018."
"Right now I think they will probably leave the policy unchanged and we don't need to be too concerned about GDP reading from today," he signified.
/VCG Photo
IMF downgraded global growth forecast for 2018 and 2019 at the conference held in Bali last week. And there are some concerns in common that global growth has hit its peak. While Jameel said there are a couple of different layers of complexities that could impact financial market.
"We see other GDP readings, not just in China, signaling some sort of slowdown with the global economy, probably falls into the global scale," Jameel said.
"You've also got US interest rate policy, a massive move higher in US 10-year treasury yield. Now you've got President Trump talking more actively against the Federal Reserve, along with the overall uncertainty in the external environment with the budget in Italy, the German election from last week, the Saudi Arabian investigation still ongoing," he added.
Meanwhile, he said he would not look at China or the isolated GDP reading as that much of a massive driver for the global economy. "You also have to take into account the markets that have be on and off for the past two weeks," Jameel stated. "There wouldn't be a necessary change in sentiment on acceleration."