FXstreet.com (San Francisco) - Later this evening (Saturday in China) the Final HSBC China manufacturing PMI for September is due out. The flash reading came in at 47.8 vs. final August reading of 47.6.
From the BBH Global Currency Strategy Team: “We’ve noted before that the HSBC PMI correlates better with China IP data than the official PMI does, and so we think the more bearish sub-50 reading in September points to further IP weakness this month from 8.9% y/y reported in August.”
BBH continues: “Bottom line: despite some recent efforts to improve sentiment, China is unlikely to provide much good news for global markets for the time being. However, we do think that China will ultimately avoid a hard landing, and that stock valuations will eventually take this into account.”
From the BBH Global Currency Strategy Team: “We’ve noted before that the HSBC PMI correlates better with China IP data than the official PMI does, and so we think the more bearish sub-50 reading in September points to further IP weakness this month from 8.9% y/y reported in August.”
BBH continues: “Bottom line: despite some recent efforts to improve sentiment, China is unlikely to provide much good news for global markets for the time being. However, we do think that China will ultimately avoid a hard landing, and that stock valuations will eventually take this into account.”
