IMF downgraded its projections for the Euro Area. Economists predict that the EU will get back to the pre-pandemic levels only by the end of 2022.
The indicator of Chinese manufacturers' activity is still steady in April
The indicator of Chinese manufacturers' activity is still steady. It’s due to the fact the service sector has been expanding for the second month in a row in April.
In April, the index of business activity of the manufacturing sector in this Asian country turned to be 51.4 versus the forecast of leading market experts, who hoped for 51.3. Nevertheless, the figure was below 51.5 – the outcome of the previous month. Besides this, the non-manufacturing activity index managed to tack on to 54.8 in April versus March’ result of 54.6. That’s what the China Bureau of Statistics informed. By the way, it should be noted that the value above 50 drops a hint at an increase. On the contrary, the reading below 50 stands for quite negative dynamics.
Sustained productivity can help to soothe concerns expressed by China's top leadership the previous week that the Chinese economy could slow down more abruptly than anticipated, considering the constant tension in the trade.
Some market experts pointed out that the given figures appear to be solid enough. They added that today’s data openly suggests that surge rates are still upbeat, although risks are over there.
The indicator of new export orders headed south to about 50.7 versus an outcome of 51.3. However, in the last few months it remained generally intact. New orders also inched down to 52.9 from 53.3.
Prices for finished products moderately dived to 53. The stocks of finished products, raw materials, backlogs as well as employment remained in line with previous indications.
The Chinese economy is currently facing a slight downward pressure. That’s what Zhou Hao, economist at Commerzbank AG in Singapore told. Apparently, many recent macro data demonstrate a minor downward trend, although overall PMI turns to be stable.
China will publish manufacturing and non-manufacturing PMIs on December 31, at 3:00 MT time.
The market is resilient ahead of the speeches of Fed’s Powell and ECB President Lagarde, but there are still interesting movements.
Great news for oil bulls! OPEC and its allied producers agreed to expand output cuts for the next month.
The USD skyrocketed after Fed Powell’s speech. OPEC and allied producers agreed to extend production cuts for another month. Oil surged.
The European Central Bank publishes its monetary policy statement that includes an announcement of the interest rate on March 11, at 14:45 MT time.