The slowdown was attributed to weakness in export growth and the construction sector, while investment and domestic consumption supported growth.
Michael Gayed, chief investment strategist at Pension Partners, thinks the latest headlines support the idea that the Federal Reserve may resort to additional stimulus measures.
"For the bulls, the trifecta of slower growth in China, moderating inflation in the U.S., and moderately strong earnings only means one thing: Further monetary easing remains a very real possibility in the face of deflationary pressure," he said in an email.
"Moderating inflation confirms the Fed's view that it can keep rates low for a while (bullish), slower than estimated growth in China means the People's Bank of China could begin to ease rates and jumpstart lending in response (bullish), and earnings surprising modestly on the upside means that there is a lot of room for expectations to continue to build for further stimulus (bullish). While QE3 remains a question mark, China's monetary stance may now be more important for the bulls than the Fed's.""
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