$POLEN CAPITAL CHINA GROWTH ETF(PCCE)$
Key Points
Risk-Off as Fed Cut Bets Recede: Global equities weakened after hawkish Fed signals cut December rate-cut odds to roughly 50/50; Asia led declines while oil and gold firmed on risk aversion.
China Slowdown Deepens: October data showed fixed-asset investment contracting and housing prices falling, with softer industrial output and retail sales underscoring fragile domestic demand.
Asia Tracks Wall Street Lower: Tech-led selling spread across the region—Japan and Korea fell sharply—amid valuation concerns and fading policy-easing hopes, despite a firmer onshore yuan.
Foreclosure Activity Ticks Up: U.S. foreclosure filings rose again in October (starts and completions higher year over year); still far below crisis levels but pointing to emerging housing stress.
Risk-Off as Fed-Cut Hopes Fade
Asian equities fell sharply after Federal Reserve officials signaled caution on cutting rates, shrinking market odds of a December move to roughly 50/50.
MSCI Asia ex-Japan slid 1.6%, with Japan’s Nikkei down 2% and South Korea off as much as 3.6%; Chinese stocks eased after October industrial output and retail sales missed forecasts.
U.S. futures softened, while 10-year Treasury yields held near 4.11% and the dollar eased.
Oil rose after supply disruption headlines (Brent ~$63.95), and gold firmed.
The pullback reflects valuation nerves; especially in tech, amid thinner data visibility following the recent U.S. shutdown.
China Growth Cools as Property Drag Deepens
China’s October data underscored a slowing economy: fixed-asset investment fell 1.7% in the first ten months (the steepest since the pandemic era), with property investment down 14.7% year to date.
Industrial output eased to 4.9% from 6.5% in September, and retail sales grew 2.9%, the weakest pace this year despite beating forecasts.
New home prices fell 0.5% month on month and 2.2% year on year, highlighting ongoing housing stress.
While headline inflation turned positive (CPI +0.2% y/y; core +1.2%), economists expect little new stimulus in 2025, keeping pressure on Beijing to support demand as exports also falter.
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