Analysts at Standard Chartered note that China’s official manufacturing PMI registered the lowest reading since July 2016 in November, staying on the dividing line between expansion and contraction.
Key Quotes
“Demand softened on a broad base, and the new orders sub-index fell for the fourth straight month to 50.4. The new export orders PMI stayed in contractionary territory, but improved slightly by 0.1ppt. Production activity moderated, partly due to production restrictions to tackle air pollution. The non-manufacturing PMI fell to 53.4 in November, the lowest reading since August 2017, largely dragged down by weaker construction activity. The survey results suggest a continued slowdown.”
“We expect trade performance to have moderated, while still supported by base effects, front-loading activity, and supportive measures. FX reserves likely declined further, but at a slower pace than the past two months.”
“CPI and PPI inflation may have eased in November. We think real activity saw mixed performance, with retail sales and fixed asset investment (FAI) growth edging up but industrial production (IP) slowing down.”
“Credit growth may have eased further in November. CNY loan growth likely remained stable, while off-balance-sheet lending continued to shrink. Support from local government special bond issuance was likely minimal, with 98% quota used as of end-October. We expect M2 growth to have remained low at 8.0% y/y in November, as the central bank has not conducted reverse repo operations since 26 October.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
USD/JPY holds near 155.50 after Tokyo CPI inflation eases more than expected
USD/JPY is trading tightly just below the 156.00 handle, hugging multi-year highs as the Yen continues to deflate. The pair is trading into 30-plus year highs, and bullish momentum is targeting all-time record bids beyond 160.00, a price level the pair hasn’t reached since 1990.
AUD/USD stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation
The Aussie Dollar begins Friday’s Asian session on the right foot against the Greenback after posting gains of 0.33% on Thursday. The AUD/USD advance was sponsored by a United States report showing the economy is growing below estimates while inflation picked up.
Gold soars as US economic woes and inflation fears grip investors
Gold prices advanced modestly during Thursday’s North American session, gaining more than 0.5% following the release of crucial economic data from the United States. GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the US Fed could lower borrowing costs.
Ethereum could remain inside key range as Consensys sues SEC over ETH security status
Ethereum appears to have returned to its consolidating move on Thursday, canceling rally expectations. This comes after Consensys filed a lawsuit against the US SEC and insider sources informing Reuters of the unlikelihood of a spot ETH ETF approval in May.
Bank of Japan expected to keep interest rates on hold after landmark hike
The Bank of Japan is set to leave its short-term rate target unchanged in the range between 0% and 0.1% on Friday, following the conclusion of its two-day monetary policy review meeting for April. The BoJ will announce its decision on Friday at around 3:00 GMT.