Failed US GDP Data, China Tries to Calm Markets

30 Jul 2021

The main event yesterday, after the extremely no results of the FOMC meeting, was the publication of preliminary data on US GDP for the second quarter of 2021. Seeing the published figures, the Fed's position becomes clearer. Everyone expected a powerful leap to the 8.5% region from the US GDP. In fact, it turned out 6.5%. Based on the forecast figure, the data came out completely and completely disastrous. Based on the average growth rate of US GDP in the pre-pandemic years, the numbers are excellent.

But we are in a post-pandemic reality, and in it everyone was waiting for a quick recovery in the US economy, but it turned out to be far from so fast. And the figures for jobless claims show that it is very likely that the peak of recovery has already been passed.

But this negative was offset by information from China. The China Securities Regulatory Commission met with major banks and investors to reassure them and iron out major corners such as banning Chinese companies from overseas from listing, and to clarify decisions regarding online education. Based on the dynamics of the Chinese stock market, investors were satisfied with the meeting.

Another positive was the advancement of Biden's infrastructure plan up the legislative ladder. A procedural vote in the Senate with a 67-32 score in favor of the bill is a good indication that the infrastructural can pass the House by early next week. By the way, on this occasion there is interesting news for fans of the cryptocurrency: taxes on cryptocurrency will become one of the possible sources of funding for the infrastructure plan.