China will publish manufacturing and non-manufacturing PMIs on December 31, at 3:00 MT time.
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.
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.