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Weak PMI data defined today's session with....>

CHINA
CHINA: Weak PMI data defined today's session with USDCNH gaining 0.6% to shift
the focus back on its 200dma, a level which has been recovered in USDCNY. Above
here would suggest a potential bullish reversal. The breakdown of the PMI
revealed some improvement in the external picture and deterioration in the
domestic economy, which strengthens the likelihood of further easing. 
- Rate markets saw a relatively muted reaction however with 10 year futures
trading virtually flat while 2 year swap rates edged 3bps lower to close in at
the Jan 16 low at 2.45%.
- Expectations of further easing are growing, with Barclays noting a potentially
imminent benchmark rate cut and this appears to be supporting local stocks as
the CSI300 has added ~1.5% to break cleanly above the 3200 level. Also worth
noting that the Chinext has added over 3% on the day, adding weight to the
broader equity market recovery. 

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