China will publish manufacturing and non-manufacturing PMIs on December 31, at 3:00 MT time.
China’s industrial revenue surge speeds down in June
In June, revenue surge for China's industrial companies speeded down from May because factory output decelerated in the face of soaring trade clashes with America as well as China’s everlasting efforts to reduce debt and pollution.
Market experts point out that profits could further shrink in the second half of 2018 because trade clashes intensify, thus adding more pressure on surge in the world's number two economy.
In June, industrial revenue tacked on 20% hitting 658.29 billion Yuan in contrast with May’s 21.1% soar.
Ascending prices managed to cushion companies’ revenue even as industrial output speeded down in June, although it didn’t provide plausible reasons for the slower revenue surge.
In the second half of 2018 there could be a more visible deceleration in export surge in China that could apply some downside pressure on revenue.
Building materials, oil extraction and steel sectors turned out to be major drivers behind revenue surge for the first half of 2018. However, revenue surge in non-ferrous metal smelting, processing, telecommunications, electronic equipment manufacturing and textile speeded down during the same period from 2017.
For the first half of 2018, industrial companies’ revenue ascended 17.2% from 2017 hitting 3.39 trillion Yuan, speeding up from a 16.5% ascend for January-May.
During the April-June period China's economic surge speeded down from the previous quarter. Meanwhile, June's industrial output surge dived to a four-year minimum, driving worries as for the outlook in the face of soaring signs of stress.
The government's vigorous effort to reduce emissions and debt have spurred borrowing costs and also curtailed output for some major industries, and threats of further duties on Chinese products from the US government add to the headwinds for the second quarter, with the Chinese government insisting that economic fundamentals happened to be firm enough.
The market is resilient ahead of the speeches of Fed’s Powell and ECB President Lagarde, but there are still interesting movements.
The market sentiment is mixed, but there are still interesting movements on the market.
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.