01 Dec

Chinese economy demonstrates its strength

December 1, 2020

by JustForex

In November, China’s manufacturing sector demonstrated the strongest growth in a decade, signaling an economic recovery after the Covid-19 outbreak. The Caixin Manufacturing PMI rose to 54.9 in November from 53.6 in October. A score above 50 indicates sector expansion.

Manufacturing companies announced that the manufacturing has grown at the fastest pace in a decade as a result of new orders as well as further recovery from the Covid-19-related disruptions that have been observed earlier this year.

New orders also grew the most in a decade, fueled by the rise of domestic demand.

The growth of new export activities was not as noticeable as the growth of the total number of new orders. Strong macrostatistics make China a more attractive country for investment, which in turn creates an inflow of capital into assets.

The politician of the Bank of England Sylvanas Tenreiro said the main economic boost from progress in COVID-19 vaccine development will come only when vaccinations start, and the Bank of England must prevent the market interest rates from rising that threaten the economic recovery.

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It was said that progress in vaccine development would mitigate one of the biggest risks of deteriorating of the Bank of England economic forecasts in the medium-term perspective, and households could postpone spending until vaccines actually reduce health risks. Based on her announcement, vaccination will boost the recovery, which will have a good impact on the investment environment in the country.

Crude oil prices are declining amid uncertainty as to whether OPEC + will agree to extend its major production cuts in negotiations. Correction of WTI crude oil is expected to the level of 43.50.

Market indicators

On Friday, the American market closed with a decline in indices. The DOW fell 0.91%, NASDAQ -0.06%, S&P 500 -0.46%.

The dollar index maintains a downward trend and is trading at 91.7.

The 10-year government bonds yield remains stable at 0.84%.

It is worth paying attention to the news feed for today. At this time, we recommend traders to be careful when making transactions due to the increased volatility.

The news feed for 2020.12.01:
  • – German Manufacturing PMI at 10:55 (GMT + 2);
  • – Unemployment Change in Germany at 10:55 (GMT + 2);
  • – UK Manufacturing PMI at 11:30 (GMT + 2);
  • – Eurozone Consumer Price Index at 12:00 (GMT + 2);
  • – GDP in Canada at 15:30 (GMT + 2);
  • – Speech by the Federal Reserve System Chairman Powell at 17:00(GMT + 2);
  • – US Manufacturing PMI at 17:00 (GMT + 2);
  • – Speech by ECB President Lagarde at 19:00 (GMT + 2).

by JustForex

 

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.


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