Below is a chart and brief excerpt from today's Early Look written by Senior Macro Analyst Darius Dale.

Post this morning’s refresh, I learned that China’s DEC high-frequency economic data confirmed what various leading indicators had been signaling – a tentative bottom in the Chinese economy. Specifically, Industrial Production accelerated +70bps to 6.9% YoY – the fastest RoC since MAR ’19.

Fixed Assets Investment registered its first sequential uptick since JUN, accelerating +20bps to 5.4% YoY. That the gain was driven by Private FAI (+20bps to 4.7% YoY) vs.  SOE FAI (-10bps to 6.8% YoY) rhymes with the surge of nontraditional financing seen in the DEC credit data, which itself was driven by the PBoC’s most aggressive month of policy support since OCT ’17. 

Retail Sales were steady-as-she-goes, holding flat at 8.0% YoY in DEC.

CHART OF THE DAY: Remove Emotion And Feel From Macro Risk Management  - Chart of the Day