In November, China's industrial output growth increased as the interruption caused by power outages subsided, while retail sales growth slowed due to an outbreak of a new coronavirus type.
The National Bureau of Statistics said on Wednesday that industrial production increased 3.8 percent year over year in November, above the 3.5 percent increase in October. This was also more than the 3.6 percent expected by economists.
Meanwhile, after growing 4.9 percent in October, retail sales climbed at a slower rate of 3.9 percent on a year-over-year basis. Sales are expected to increase by 4.6 percent.
Fixed asset investment increased 5.2 percent in the eleven months to November, less than the 6.1 percent growth witnessed from January to October.
In November, the urban jobless rate increased to 5% from 4.9 percent in October.
On Wednesday, the People's Bank of China used a medium-term loan facility to infuse CNY 500 billion into the financial system. The one-year MLF interest rate remained constant at 2.95 percent.
The decision to keep the MLF means that the loan prime rate will remain constant next week, according to Capital Economics economists Sheana Yue and Mark Williams.
Economists forecast policy rate reduction in the next months, as well as a small loosening of credit quantitative constraints. However, they emphasized that this will only moderate rather than reverse the economic decline.
Concerns about Omicron might have an impact on oil prices.
Investors are anticipated to remain cautious following Tuesday's World Health Organization conference. The new Covid omicron form is spreading quicker, according to experts. This variety has been discovered in more nations than any of its predecessors, suggesting that it is likely to be widespread.
Meanwhile, oil prices have fallen.
Following the announcement by the International Energy Agency, oil consumption is projected to be lower than expected.
The revised omicron version will be available for the first time next year.
"Oil prices plunged overnight following the International Energy Agency's (IEA) statement that oil markets had returned to surplus this months and that that surplus will deepen in the early part of next year," said Vivek Dahar, Director of Mining and Energy Commodities Research at Commonwealth Bank of Australia.
Currencies
The dollar index is a measure of the value of the dollar in the United States.
The index, which compares the performance of the dollar against a basket of peers, rose to 96.571. This is a continuation of the upward trend that began at 96.3.
The yen is the Japanese currency.
The dollar was trading at 113.76 cents, down from about 113.5 cents. At 0.7106, the Australian dollar was hardly changed.
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