23.06.2014 - Business activity in the Chinese industry increased
The main event of the day today was the announcement on the growth of manufacturing PMI in China. Thus, according to HSBC, the index in June rose to 50.8, which is better than medium analysts forecast at 49.7. It is noteworthy that the level of index of greater than 50 indicates the acceleration in the sector. This event had a positive impact on the dynamics of the Australian and the New Zealand dollar for which China is a major trading partner. Oil prices have also increased, because the acceleration of industrial growth in China, which is the world's second largest consumer of oil, should lead to higher demand for oil.
At the same time, Chinese stocks not so positively reacted to data from HSBC due to the stably bad situation on the housing market of China, which threatens a slowdown of GDP growth in the future. It should be noted that the Chinese government has stated its readiness to take the necessary measures to stimulate the economy.
Despite the positive data on the industry, we maintain a negative outlook on the Chinese market.
Wish you the profits!
FXFINPRO Capital Analytical department.