Published January 20, 2026
MarketsMacroRatesFXCommodities
China Data Weighs on Risk
What Happened
- China growth data came in softer than expected, weighing on global sentiment.
- Commodities slipped while defensive equities outperformed.
- Treasury yields edged lower as growth worries resurfaced.
- The dollar strengthened against Asian FX.
What It Means
- Global growth concerns can cap commodity upside and lift safe-haven demand.
- Lower yields provide temporary support for duration-heavy sectors.
- A stronger dollar tightens conditions for EM assets.
What I Think
- I am watching whether this is a one-off data wobble or a real trend.
- If commodities keep slipping, the rotation thesis loses momentum.
- Defensives look attractive until clarity improves.
Market Terms
- Safe-haven bid - Flows into assets seen as stable during risk-off moves.
- EM tightening - Pressure on emerging markets from a stronger dollar.
- Commodity sensitivity - How growth data affects commodity prices.