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20 Apr 2015
China HSBC manufacturing PMI might drop to 49.4 – BBH
FXStreet (Barcelona) - The Brown Brothers Harriman Team expects China HSBC manufacturing PMI to fall further, and mention that any negative reaction will likely stand limited as the softness has been already priced in.
Key Quotes
“The latest measures by the Chinese government (basically making it easier to short local stocks) set a negative tone at the end of last week. Then today, the extra stimulus from the PBOC in the form of a 100 bp cut in reserve requirements has helped to offset that, feeding into a rebound in Developed Market stocks.”
“HSBC gives us the first snapshot of April activity in China with its flash PMI reading. This is expected to fall further, but damage to sentiment will likely be limited since markets have already priced in further weakness as well as further stimulus.”
“HSBC reports flash China manufacturing PMI for April Thursday, expected at 49.4 vs. 49.6 final in March. This is the first April snapshot, and follows a generally weak Q1.”
“The PBOC has already responded to the softening economic outlook with a reserve requirement cut over the weekend, and further stimulus is likely this year. However, Premier Li has pledged not to use a weak yuan to stimulate the economy.”
Key Quotes
“The latest measures by the Chinese government (basically making it easier to short local stocks) set a negative tone at the end of last week. Then today, the extra stimulus from the PBOC in the form of a 100 bp cut in reserve requirements has helped to offset that, feeding into a rebound in Developed Market stocks.”
“HSBC gives us the first snapshot of April activity in China with its flash PMI reading. This is expected to fall further, but damage to sentiment will likely be limited since markets have already priced in further weakness as well as further stimulus.”
“HSBC reports flash China manufacturing PMI for April Thursday, expected at 49.4 vs. 49.6 final in March. This is the first April snapshot, and follows a generally weak Q1.”
“The PBOC has already responded to the softening economic outlook with a reserve requirement cut over the weekend, and further stimulus is likely this year. However, Premier Li has pledged not to use a weak yuan to stimulate the economy.”