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.
China posts the weakest factory surge for over two years
In November, surge in the Chinese manufacturing sector stood still for the first time for two years due to the fact that new orders speeded down, putting pressure on China ahead of key trade negotiations between leaders Xi Jinping as well as Donald Trump this weekend.
If the high-stakes talks fail, US leader will probably proceed with a steep tariff lift on China’s products in January that would further strain China's decelerating economy and increase risks to global surge.
Friday's dismal factory activity outcomes hinted that a bunch of stimulus measures by the Chinese government for the last time has yet to be felt, backing views that business conditions in this Asian country will probably worsen before they get better.
Released by the National Bureau of Statistics, the official Purchasing Managers' Index slipped to 50 in November, thus missing market hopes. It tumbled from October’s reading of 50.2. What’s more, it turned out to be the weakest outcome in China for up to 28 months.
Market experts had predicted minor change from October's already marginal surge levels. By the way, the 50-point mark is traditionally considered to be neutral territory, showing no expansion or contraction in activity on a monthly basis.
The current US presidential administration has pointed to soaring signs of economic weakness in the Asian counterpart as well as its diving stock market as proof that America is winning the trade conflict.
On Thursday, Trump sent mixed signals as for the prospects for a trade agreement with the Asian rival, telling that an agreement was close, although he wasn’t assured if he wanted one immediately.
An indicator of future activity, the new orders sub-index went down from 50.8 to 50.4, with export orders tumbling for a sixth straight month.
Rising yields, potential US tax hikes, and inflation fears worry investors. As a result, the market sentiment is risk-off. Stocks are falling, while the USD and the JPY are edging higher.
Jump in to get the latest market news and fresh technical analysis of EUR/USD and GBP/USD!
In this article, you'll find the list of the hottest stocks to trade on April 19-23, which will publish their earnings!
While Citigroup reports better-than-expected quarterly data, it is also aims at restructuring its global presence. What will be the impact?
What's moving markets on Friday? What is the hottest news? Let's find out!