24 Mar 2014
More bad news on the China front - Danske Bank
Lars Christensen, Chief Analyst at Danske Bank comments that this morning we got further bad news on the Chinese economy.
Key Quotes
“The HSBC/Markit PMI for China dropped to 48.1 in March from 48.5 in February. The drop has pushed some commodity prices lower – most notably copper prices, which are particularly sensitive to Chinese demand.”
“Despite US stock markets falling slightly on Friday, rising geopolitical tension and weak Chinese economic data, Asian stock markets are actually trading slightly higher this morning.”
“The Japanese Nikkei index is up nearly 2% reflecting the fact that the Japanese markets were closed on Friday. A weaker yen is probably also helping the sentiment in the Japanese stock market.”
“The US yield curve has been flattening since Wednesday when Fed chair Janet Yellen said the Federal Reserve could raise rates six months after its current bond-buying programme ends. The curve flatting continued on Friday. Often a flatter yield curve indicates a monetary-induced slowdown in growth.”
Key Quotes
“The HSBC/Markit PMI for China dropped to 48.1 in March from 48.5 in February. The drop has pushed some commodity prices lower – most notably copper prices, which are particularly sensitive to Chinese demand.”
“Despite US stock markets falling slightly on Friday, rising geopolitical tension and weak Chinese economic data, Asian stock markets are actually trading slightly higher this morning.”
“The Japanese Nikkei index is up nearly 2% reflecting the fact that the Japanese markets were closed on Friday. A weaker yen is probably also helping the sentiment in the Japanese stock market.”
“The US yield curve has been flattening since Wednesday when Fed chair Janet Yellen said the Federal Reserve could raise rates six months after its current bond-buying programme ends. The curve flatting continued on Friday. Often a flatter yield curve indicates a monetary-induced slowdown in growth.”