Free Trial
ITALY T-BILL AUCTION PREVIEW

Jul 27 6-Month BOT Details

EURUSD TECHS

Flat Finish

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

PMIs Reinforce Outperformance Theme

CHINA

We noted late last week that China's PMI prints may reinforce the China outperformance theme (see this link for more details). Today's non-manufacturing PMI printed much stronger than expected, coming in at 54.7 versus 50.5 expected and is back to close to highs from May of last year. The manufacturing PMI missed estimates (50.2 versus 50.5 expected), although it still managed to move back into expansionary territory.

  • The surprising aspect of today's result is the extent of the non-manufacturing PMI bounce, particularly given on-going covid related restrictions observed during June.
  • In any case, today's outcomes should be enough to push the Citi China Economic Activity Surprise Index (EASI) higher. The chart below plots the China EASI versus the US EASI, which have crossed over recently.

Fig 1: Citi China & US EASI Trends - Crossing Over

Keep reading...Show less
345 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

We noted late last week that China's PMI prints may reinforce the China outperformance theme (see this link for more details). Today's non-manufacturing PMI printed much stronger than expected, coming in at 54.7 versus 50.5 expected and is back to close to highs from May of last year. The manufacturing PMI missed estimates (50.2 versus 50.5 expected), although it still managed to move back into expansionary territory.

  • The surprising aspect of today's result is the extent of the non-manufacturing PMI bounce, particularly given on-going covid related restrictions observed during June.
  • In any case, today's outcomes should be enough to push the Citi China Economic Activity Surprise Index (EASI) higher. The chart below plots the China EASI versus the US EASI, which have crossed over recently.

Fig 1: Citi China & US EASI Trends - Crossing Over

Keep reading...Show less