Hong Kong’s HK 50 index rose and the Chinese yuan edged up as traders assess the outcome of the first virtual meeting between US President Joe Biden and Chinese leader Xi Jinping.
American business activity speeds down in June
In June, American private sector activity speeded down, as follows from survey data uncovered on Friday.
This month the preliminary outcome of the Markit services purchasing managers’ index amounted to 56.5, dipping from May’s result of 56.8.
Market experts had predicted an outcome of 56.4.
In June, the manufacturing PMI headed south to 54.6 versus May’s reading of 56.4.
Market experts had hoped for an outcome of 56.3.
The composite output index, gauging the combined output of both the manufacturing as well as service sectors, headed south to 56.0 in June in contrast with May’s reading of 56.6.
The consensus forecast was making its way to a sag to 55.1.
On the index an outcome above 50.0 stands for industry expansion, but if it’s below, it shows contraction.
Notwithstanding the sag in the composite index, IHS Markit told that American private sector companies faced a strong end to the second quarter of this year, powered by another firm contribution from service providers.
On the contrary, manufacturing production surge speeded down for the second month running, getting to its weakest value since September last year.
IHS Markit chief market expert Chris Williamson stressed that even with June’s slowdown, the second quarter turned out to be the best for three years.
According to his calculations, economic surge managed to pick up from the 2.3% observed in the first quarter to a 3% soar.
Price pressures were still elevated because of a mix of soaring fuel prices as well as tariff-related price jumps and also supplier’s gaining pricing power because demand beats supply for many inputs.
By the way, for the first time in 2018, factory output is soaring faster than order books, thus dropping a hint that output might be adjusted down in the nearer months.
The last week was so eventful for traders: FOMC Meeting, Bank of England’s rate decision, the OPEC+ meeting, and also NFP. This week is going to be interesting as well! Let’s see what you should focus on.
The US Inflation Rate (CPI) will be released on Wednesday, November 10, at 15:30 MT (GMT+2).
ISM Manufacturing PMI will be announced at 17:00 MT (GMT+2) on Wednesday, December 1.
The Eurozone will publish the Indicator of GfK Consumer Confidence on November 25, at 09:00 GMT+2.
The United States will publish the Federal Open Market Committee Meeting Minutes on November 24, at 21:00 GMT+2.