Chinese and European PMIs to Drive Market This Week

Business confidence data from China and the euro zone will offer some pointers this week to where the global economy is going after the U.S. Federal Reserve kept markets guessing about when it will begin raising rates.

With a Chinese slowdown blamed for spooking the Fed last week into postponing a rate hike, China’s flash manufacturing purchasing managers’ index on Wednesday will be closely watched for signs of deterioration in the world’s second-biggest economy.

Economists polled by Reuters are banking on a slight improvement and any disappointment risks reigniting concerns that the Chinese economy is slowing faster than thought.

“We would caution against pinning hopes on more than a slight stabilization at weak levels, given continued weak industrial conditions and especially as the effect of recent factory closures will not have completely washed out,” said economists at brokerage Exane BNP Paribas.

Via Reuters

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza