China: Clouds are lifting – Danske Bank

Sandeep Kanihama FXStreet Contributor

Danske Bank analysts point out that Chinese growth took a hit from the trade war in 2019 but rays of light have emerged, that suggest the worst may be behind us.

Key Quotes

“We expect a moderate increase in the manufacturing sector driven by stimulus and easing trade tensions.”

“The US-China trade war has calmed down again following the phase-one deal and we see a 50% chance that the US and China will strike a bigger deal in 2020 and more tariffs will be rolled back.”

“China has been the epicentre of the global slowdown and we expect the lift to activity to have a positive spillover to the rest of the world.”

“We expect only limited further policy stimulus from here and a slight appreciation of the CNY as activity bottoms and trade fears ease.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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