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 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.
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.
The last week was so eventful for traders: FOMC Meeting, Bank of England’s rate decision, the OPEC+ meeting, and also NFP. This week is going to be interesting as well! Let’s see what you should focus on.
The US Institute for Supply Management will release ISM manufacturing PMI on July 1, 17:00 GMT+3.
The United States Bureau of Economic Analysis will release monthly Personal Consumption Expenditures (PCE) on June 30, 15:30 GMT+3.
The governor of the Bank of England, Andrew Bailey, will hold a speech on June 29 at 15:30 MT time (GMT+3).