Chinese manufacturing sours risk sentiment
City Index January 23, 2014 2:17 PM
<p>Equities and FX risk trades are broadly lower this morning following disappointing Chinese HSBC manufacturing PMI data that signalled a contraction in the sector for […]</p>
Equities and FX risk trades are broadly lower this morning following disappointing Chinese HSBC manufacturing PMI data that signalled a contraction in the sector for the first time in six months.
The 50 level that signals expansion or contraction was broken, with a reading of 49.6 versus the consensus forecast of 50.3 as AUD reversed its gains made yesterday following stronger domestic inflation data trading initially back below 0.8800.
The Nikkei, like other equity markets, reversed its gains that saw the JPY strengthen following an initial high above 104.80.
CAD took a another leg lower in the Asian session, trading above 1.11 as Canadian Central Bank Governor Poloz added to a dovish statement yesterday that downgraded inflation forecasts. He stated in a Canadian TV interview that the door to a rate cut is ‘slightly more open’.
The data switches to Europe today with both the manufacturing and service sector PMI readings to be released this morning.
Consumer confidence data will be released from the EU area this afternoon along with existing home sales and the weekly jobless claims count from the US.
Supports 1.3530-1.3500-1.3450 | Resistance 1.3630-1.3660-1.3700
Supports 103.90-103.60-103.30 | Resistance 104.50-104.90-105.50
Supports 1.6550-1.6520-1.6465 | Resistance 1.6605-1.6650-1.6710
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.