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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.
US Advance quarterly GDP is announced on April 29 at 15:30 MT time.
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.
Our analyst discusses the latest news and shares his trade ideas on gold, EUR/USD, and S&P 500. Jump in!
The Bank of England will publish a monetary policy statement and update on the interest rate on Thursday, at 14:00 MT time.
The Reserve Bank of Australia (RBA) will hold a meeting and announce changes to the monetary policy on August 3, at 07:30 MT time (GMT+3).