EnergyScan

Sharp decline in China’s PMIs

A bad surprise in China, where the services purchasing managers’ index (PMI) fell well below the 50 level that separates contraction and expansion in activity in August. This suggests that the impact of the containment measures put in place to stem the resurgence of the pandemic was much stronger than expected. The manufacturing index also fell to 50.1.

EnergyScan - Economics news

Asian equity markets ignored these statistics, considering that the pandemic is already under control in China, and continued the upward movement triggered by Jerome Powell’s speech in Jackson Hole. Bond yields continued to fall, with the US 10-year now at 1.27%. Finally, the dollar is also weakening and is now trading at 1.1830 against the euro. Household consumption disappointed in France in July: -2.2% m/m, but Q2 GDP growth was revised from +0.9% to +1.1% q/q.

Today, we should watch out for the expected rise in eurozone inflation in August and the likely sharp fall in US consumer confidence, which could in total reinforce the rise in the EUR/USD exchange rate.

Share this news :
Share on twitter
Share on linkedin
Share on email

You might also read :

ES-oil
February 15, 2021

Supply risk cocktail

Brent futures prices rallied, with prompt contract reaching 63.5 $/b on late Friday, as a cocktail of supply risk were hitting the oil market. First,…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Subscribe to our newsletter

Don’t have an account yet?  Sign up here!

[booked-calendar]