WS #7601

China's April economic data missed expectations sharply, with retail sales growing only 0.2% YoY (vs. 2.0% expected), industrial output at 4.1% (vs. 5.9%), and fixed asset investment contracting 1.6% (vs. +1.6% expected). Property investment fell 13.7% YoY and new construction starts plunged 22%. The NBS spokesperson acknowledged the international situation remains 'grim' and called for more active fiscal and moderately loose monetary policies. Separately, Brent crude broke above $111/bbl as drone attacks near the UAE Barakah nuclear plant and on Saudi Arabia dimmed hopes for de-escalation, with the US now shipping oil to Australia. The US long bond yield hit its highest since 2023 on inflation concerns. The Iran/Hormuz crisis remains the dominant theme, ESCALATING further with no Iran deal breakthrough during Trump's China visit. The weak China data adds to global growth concerns, compounding the stagflationary impulse from oil supply disruptions.