What happened? On Monday, February 21, Russian President Vladimir Putin signed decrees recognizing the sovereignty of the Donetsk and Lugansk People's Republics…
China’s March services activity accelerates to 14-month maximum in a further sign of recovery
In March, activity in China's services sector rallied to a 14-month maximum because demand improved abroad and at home, a private business poll revealed on Wednesday, thus contributing to signs that government stimulus measures are gradually coming into effect.
However, experts cautioned that it’s too early to ascertain if the Chinese economy has turned the corner, with numerous companies cautious on whether there’ll be much improvement in 2019 or not.
Eventually, the Caixin/Markit services purchasing managers' index ascended to 54.4 that appears to be the highest value since January 2018 and also up from February's reading of 51.1. By the way, the 50-mark that separates contraction from ascend.
Survey respondents told that activity was being backed by firmer demand, fresh state policies as well as improved access to financing.
The findings turned out to be mostly in line with those of an official indicator on the non-manufacturing sector published on Sunday that revealed services activity tacked on in March because new orders rallied more rapidly. In particular, construction demonstrated strength, probably reflecting government attempts to fast-track more infrastructure projects to back domestic demand.
Additionally, both official as well as private manufacturing polls suddenly got back to surge in March, driving expectations that China's downturn might be bottoming out.
The private services poll revealed that total orders headed north to 14-month maximum, with solid surge in export sales for the country’s service providers.
However, surge in operating costs kept outpacing prices charged by services businesses, gauging constant pressure on their revenue margin.
Eventually, business confidence tacked on, although stayed weaker than longer-term trends. 18% of respondents hoped business activity would be higher in a year.
Hong Kong’s HK 50 index rose and the Chinese yuan edged up as traders assess the outcome of the first virtual meeting between US President Joe Biden and Chinese leader Xi Jinping.
A selloff in stocks stopped. S&P 500 has reversed up from the 100-day moving average. It should be the perfect time to buy the index.
The Australian Bureau of Statistics will announce the updated Unemployment Rate and Employment Change data on Thursday, May 19, at 04:30 MT.
The UK Office for National Statistics will publish Consumer Price Index (CPI) data on Wednesday, May 18, at 09:00 MT.
The US Census Bureau will announce Core Retail Sales and Retail Sales on Tuesday, May 17 at 15:30 MT.