*A strong slowdown was confirmed in China`s economy during August due to COVID19 outbreaks.
*The Eurozone is recovering at a faster rate than originally expected because of unprecedented fiscal and monetary stimuli: Christine Lagarde, ECB.
*Inflation in the United Kingdom increased to its highest level in 9 years (3.2% annual); markets are already considering a rise in rates on behalf of the BoE.
*Disruptions in crude oil production in the Gulf of Mexico caused by hurricane Ida eliminate the positive effect of OPEC+`s decision to increase production in September.
China`s growth figures disappoint. The world`s second largest economy suffered great consequences after the government`s zero tolerance strategy against COVID19 and slowed down more than expected during August. Retail sales recorded a 2.5% annual increase during the month, figure way below the 7% estimated by most analysts. The data points towards a decrease in consumption during the summer, partly due to the implementation of restrictions in efforts to contain the virus`s spread in the country. Sales in restaurants receded (-) 4.5% at an annual rate, with a good chance of seeing weakness continue through September after new quarantines were announced in some cities. Industrial production disappointed (5.3% annual vs 5.8%e.), with an important slowdown in construction as a result of controls and limitations on financing real-estate developments and granting mortgage loans; actions through which the government seeks to reduce the financial risk of the country`s excessive debt. Property investment and sales weakened during August; investment in construction contracted (-) 3.2% in the first 8 months of the year. This could have a negative effect on the global recovery as demand for China`s raw materials slows down along with the economy. Unemployment in the country remained stable at 5.1% and authorities are expected to act with new fiscal and monetary stimuli soon.