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.
China's industrial profits speed down for sixth month
In October, profit surge at China's industrial companies speeded down for a sixth month in a row due to the fact that factory prices along with the tempo of sales increases decreased against the backdrop of strengthening uncertainties stemming from the US-China trade conflict.
The figures actually hint at further deceleration in the Asian country’s manufacturing sector and the economy in general days ahead of a high stakes gathering between US leader Donald Trump and Xi Jinping, which the Chinese cabinet hopes could prevent a further escalation in their conflict.
America and China have already imposed levies on billions of dollars of each other's products, impacting manufacturing and worsening the general outlook for global surge.
As a matter of fact, in October, industrial profits headed north by up to 3.6% from 2017 hitting 548 billion Yuan, which is a 7-month minimum, speeding down from September's 4.1% surge. That’s what the National Bureau of Statistics uncovered on Tuesday.
The deceleration occurred mostly because of cooling factory-gate inflation as well as a high-base effect.
Some financial analysts are assured that profitability will keep deteriorating in the nearer future.
Nomura economists told that the descending trend will persist considering already-high financing costs, sluggish domestic demand, soaring credit defaults, not to mention the escalation in the China-US trade clash.
Moreover, factory-gate inflation has been receding for the last time on sluggish demand, notwithstanding government efforts to stimulate the national economy, with credit-easing measures to spur lending to businesses and increase infrastructure spending.
October's revenue data showed up as fears about the US-China conflict were boosted by US leader’s interview to the Wall Street Journal before his gathering with Chinese President in Argentina at the end of this week.
China is currently experiencing slower economic surge due to the trade conflict and efforts to tame financial risks and resolve pollution issues.
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 US showed strong retail sales for August despite the spread of the Delta virus strain. As a result, the US dollar rocketed and gold dropped by 2286 points in half an hour after the release.
ISM Manufacturing PMI will be announced at 17:00 MT (GMT+2) on Wednesday, December 1.
The Eurozone will publish the Indicator of GfK Consumer Confidence on November 25, at 09:00 GMT+2.
The United States will publish the Federal Open Market Committee Meeting Minutes on November 24, at 21:00 GMT+2.