The British monthly GDP is announced on Friday at 09:00 MT time.
China’s manufacturing surge picks up moderately in March
In March, surge in China's manufacturing sector managed to pick up a bit because the Chinese government had winter industrial pollution limits lifted and steel mills increased their output as construction activity shifts back into higher gear.
In March, the official manufacturing Purchasing Managers' Index is anticipated to have ascended to 50.5 versus February's 50.3, as follows from a median estimate of 29 market experts in a Reuters survey. In this poll contraction is divided from expansion by with the 50-mark.
It would point out to the 20th straight month of expansion for the country’s versatile manufacturing sector. It will also back consensus views that the world's number two economy will face just a moderate slowdown in surge in 2018.
Confounding hopes for a winter lull, the country’s steel companies kept increasing output during the first quarter, thus responding to firm sales, and also spurred borrowing, hiring and capital expenditures, as follows from a poll from the China Beige Book uncovered on Wednesday.
However, in recent trading sessions steel prices have gone down because inventories leapt to multi-year maximums.
Overall, this year China's economic data suggests that the Chinese economy has managed to carry firm surge momentum into the first quarter from 2017, with a government think tank predicting the country’s economy is going to surge 6.9% during the first half.
However, many market experts are assured that the country’s tempo will slow later in 2018, mainly suppressed by soaring borrowing costs and a cooling property markets.
An abrupt escalation in trade tensions with America has also affected the outlook and might have started dampening exporters' confidence.
Market experts hope next week’s private poll on China's factory activity will demonstrate a similar ascending trend as in the official poll, after surge in February ended up with a six-month maximum.
The main market tendency today is that the US dollar is rising against its major peers and riskier assets such as stocks and oil are plummeting.
The US unemployment claims are out on Thursday at 15:30 MT time.
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.