China's GDP: A Party Spoiler?

China's second-quarter GDP growth data, along with a range of economic indicators for June, will be released on Monday. Economists predict a significant slowdown in growth, with a consensus view of 0.5% expansion over the first quarter. While year-on-year growth is expected to be more impressive at 7.3%, this is largely due to base effects from last year's low growth. The weak economic data from China, including sliding activity and deflation concerns, has dampened investor sentiment and led to a decline in Chinese stocks, bonds, and currency. In contrast, global financial conditions are currently the loosest since April last year, contributing to a wave of bullish sentiment in local and world markets. Additionally, the second-quarter U.S. earnings season, with big names like Bank of America, Morgan Stanley, Goldman Sachs, Tesla, and Netflix reporting, has helped sustain the positive market mood.