In another blow to recent efforts to stabilize the economy and provide a better outlook for growth, Chinese manufacturing remained in contractionary territory according to the overnight PMI figures. The Caixin PMI managed to rise to 48.6 from 48.3 prior while the China Logistics Information Center PMI figure slipped from 49.8 to 49.6 in a growing sign that further stimulus might be on the way. The Chinese Yuan has continued to weaken as per interventions by the People’s Bank of China. However, should the US raise interest rates in the coming weeks, it could force the US dollar higher and bring the Yuan up with it, decreasing the nation’s export competitiveness. Despite the softness in the economy, China did manage to see the addition of the Yuan to the IMF basket of SDR currencies alongside the US Dollar, British Pound, and Japanese Yen in another sign of the nation’s growing global influence.
US Pending Home Rebound Modestly
Daily Analysis - 01/12/2015