China will publish manufacturing and non-manufacturing PMIs on December 31, at 3:00 MT time.
China’s manufacturing sector surge speeds down in June
In June, surge in China's manufacturing sector speeded down a bit due to the fact that the country’s companies faced soaring input costs as well as a dive in export orders in the face of a worsening trade clash with America, according to a private poll on Monday.
As a matter of fact, in June, the Caixin/Markit Manufacturing Purchasing Managers' index inched down to 51.0 versus May’s reading of 51.1, which is quite in line with experts’ estimates.
It had been staying above the 50-point threshold separating surge from contraction for up to 13 months.
In June, a sub-index for output tacked on to 52.1, which is a four-month maximum, although new order surge speeded down and businesses made up their mind to sell down their existing inventories instead of having them restocked.
The poll disclosed that fresh export orders had been shrinking for the third straight month, demonstrating the greatest tumble for two years, although there wasn’t a considerable slump for the last two months.
This Asian country faces worsening trade tensions with America, which is its number one export market. It undoubtedly contributed to uncertainty regarding the manufacturing sector when domestic demand speeds down.
May’s economic data demonstrated that the Chinese economy is finally speeding down, with weaker credit surge as well as a tighter liquidity environment affecting investment in local government building projects that have assisted in spurring the industrial sector.
This week China and America are set to put fresh duties on each other's imports. Moreover, both sides threaten to proceed with rolling out new measures if the other opponent refuses to back down.
Market participants have punished China’s equities as well as the Yuan since the trade clashes grew for the last month. The Chinese Yuan took a battering versus the evergreen buck in June.
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.
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.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.