The US dollar is heading for the best week in three. The market sentiment is mixed as optimism about the global economic recovery was outshined by increasing tensions between the West and China.
China’s car sales slip 14% in February
In February, China's car sales headed south by 13.8% from the same month of 2018, as China’s number one car industry association reported on Monday. The given outcome marked the eighth losing month in a row in the world's leading car market.
According to the China Association of Automobile Manufacturers, car sales in China went down to 1.48 million cars in February, following January’s 16% dive and December’s 13% tumble.
In February, sales of new energy vehicles, including electric ones, tacked on by 53.6% year-on-year.
The trend of 2018 has resumed, while the economic situation has also been quite dismal. As a result, it has suppressed consumption.
The Asian country plans billions of US dollars in tax cuts as well as infrastructure spending to underpin the national economy soaring at its slowest tempo for nearly 30 years because of softer domestic demand, to say nothing of a trade clash with America.
It has pledged subsidies to underpin rural sales of some cars and demand for new energy cars, after the country’s car market shrank in 2018 for the first time for over two decades.
The key task for dealers in the first half of this year ss to diminish car inventories against the backdrop of soaring funding pressures.
The sales performance for some Chinese car makers turned out to be mixed. In February, Great Wall Motor Co Ltd posted 18% surge in contrast with the same month of 2018. As for Geely Automobile Holdings Ltd, its sales went down by 24% for the same period.
In January and February, car sales were impacted by the Lunar New Year holiday that this year took place in the first week of February exactly when customers often postpone purchases.
Rising yields, potential US tax hikes, and inflation fears worry investors. As a result, the market sentiment is risk-off. Stocks are falling, while the USD and the JPY are edging higher.
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