FXStreet(Delhi) – Prashant Newnaha, Rates Strategist at TD Securities, notes that the Chinese data are just getting worse with the Flash Manufacturing PMI came in below expectations at 47, the lowest level since Mar 2009, vs mkt at 47.5 and TD at 49 with weak external demand the driver of the weaker headline.
Key Quotes
“Our complete thoughts on today’s release can be found here, but in brief we caution into reading too much into today’s flash PMI release. Historically, these PMI’s have shown little relation to actual GDP. 2nd, global manufacturing is contracting, but this reflects a pick up in activity shifting to services (this is a global phenomenon). Perhaps the market should focus on the Services PMI out next week, which should do a better job of capturing the latest policy initiatives to boost consumption.”
“There was no market impact on President Xi’s in a speech in Seattle . The focus of the speech was on China-US relations, cyber security and China’s efforts to speed up efforts to build an open economy. He also said that the stock market is in self recovery mode.”
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