chinese yuan and us dollar banknotes are seen in this illustration taken february 10 2020 reutersdado ruvicillustration a look at the day ahead in markets from saikat chatterjee chinas economic growth data on friday is a stark reminder of the challenges facing global policymakers gross domestic product fell 26 in the second quarter from the previous quarter official data showed compared with expectations for a 15 decline that means official forecasts of a 55 expansion this year now look a tad optimistic read more while covid19 lockdowns implemented across the worlds second biggest economy is a major factor there is no hiding the fact that confidence remains weak and restrictions remain in place in vast swathes of the country prospects of weaker growth from china will certainly hurt the global economy but policymakers are in mood to relent this week alone has seen steep hikes in canada new zealand south korea and surprise tightening in singapore and the philippines closer to home europe is grappling with fresh problems after the italian government was plunged into crisis and the european union cut growth forecasts for this year and the next read more and though two us federal reserve officials poured cold water on talk of a 100 bps interest rate hike later in july there is no escaping the fact that us interest rates are set to more than double in less than a year read more no wonder investors are preparing for more pain the euro again dipped below parity verus the dollar and has slid 15 so far this week the yen is hurtling toward 140 per dollar and an inversion in the us treasury yield curve which signals economic recession is becoming more entrenched us and european stock futures are treading water key developments that should provide more direction to markets on friday data euro area may trade balance us university of michigan consumer sentiment survey us june retail sales shell wants to share more of its blockbuster profits ceo says read more after bruising year gsk approaches consumer split in better health read more