Today’s PMI data shows a contraction in both output and services, according to economists, characteristic of the ruling Communist Party’s hardliners on Covid-19.
(Video transcript)
Today there is more evidence of a slowdown in the Chinese economy, basically due to the Communist Party’s attempts to try to eliminate Covid-19.
And this 0 Covid policy continues and goes up in some data.
Let’s take a look at what we saw today, as we saw China’s NBS production PMI fall to 49. 2 in October from 50. 1 in September, without the forecast of a reading of 50.
Now, those are the lowest readings since Covid restrictions hit production and exports, and anything below 50 indicates contraction. This will contribute negatively to the slowdown in the economy.
The non-manufacturing PMI also fell to 48. 7 from 50. 6 last month, the first contraction in the sector since May.
There are two tactics to exchange this.
First of all, this chart here, showing the appreciation of the US dollar against the offshore Chinese yuan, the third direct gain.
And indeed, if we close at those levels, it will be a record for the offshore Chinese yuan-backed dollar at 73205. We saw it above this intraday we saw on Tuesday of last week. But this upward momentum is significant and is not just the strength of the US dollar, but now highlights this weakness within the Chinese economy.
And that’s not the only way to industrialize that. The other way to industrialize is to take a look at some of the base metals where it has accumulated due to Chinese enthusiasm for structure and infrastructure projects and make sure other people are active. in the economy
But since Covid, there has been this pullback and indeed today we have a new impression of decline that was noticed, and it is the lowest point observed since December 3.
So we are very close to 11-month lows, not only for iron ore but also for other base metals. This Chinese knowledge is exacerbating the downturn in many sectors of the economy.
Please also note that the data implies a recording of our trading prices, nor an offer or solicitation of a transaction on any monetary instrument. All expressed perspectives and revisions are subject to replacement without update.
Trade the largest and most volatile money market in the world.
Find out what payments your transactions can incur with our transparent payment structure.
Find out why we have so many clients and what makes us one of the world’s leading CFD providers.
Stay updated on upcoming market occasions with our customizable economic calendar.
foreign exchange
Tracks
behav
Other markets
High-end services
Our and margins
About IG
Business Companion
Web Platform
Mobile commerce
Meta trader 4
ProRealTime
Compare features
News & Ideas
Economic calendar
Momentum report
Market data
New customer: 65-6390-5133 or accountopening@ig. com. sg
Customers: Help & Support
GI | Sitemap | Terms and agreements | Privacy | | Security IG Community | Refer a friend| Biscuits
Disclaimer:
All investment bureaucracy involves risk. CFDs are leveraged instruments. CFD trading may not be suitable for everyone and may result in losses greater than deposits, so make sure you fully understand the risks and prices involved by reading the Risk Disclosure Statement and Risk Information Sheet.
IG provides a runtime service only. The data contained herein does not imply (and should not be construed as implying) an investment recommendation or recommendation to invest, nor an offer or solicitation of a transaction in a monetary instrument, nor does the data take into account the express objectives, monetary scenario or special wishes of any person. When in doubt, seek the recommendation of an independent monetary advisor regarding the suitability of the investment, as a component of a separate commitment, as you deem appropriate.
IG Asia Pte Ltd (Co. Reg. No. 200510021K) holds a Capital Markets Services License issued through the Monetary Authority of Singapore for the commercial capital markets which are OTC derivative contracts and is an exempt money advisor.
The data in this data is not intended for citizens of the United States or Belgium and is not intended for distribution or use through any user in any country or jurisdiction where such distribution or use would be contrary to local laws or regulations.
This announcement has been reviewed by the Monetary Authority of Singapore.
© 2006-2022
Careers | Business Companion