Europe Looks To Mixed Start Despite Encouraging Chinese Manufacturing Data
Fiona Cincotta August 3, 2020 7:42 AM
Manufacturing PMI's in focus after Chinese activity jumps by most in a decade
European bourses look set to open at the start of the new month in a mixed fashion amid rising coronavirus concerns, simmering US – China tensions and ahead of the manufacturing PMI data.
Chinese manufacturing PMI data is bringing some optimism to the table, pointing to the economic recovery gaining momentum. The Caixin /Markit Manufacturing PMI showed that China’s factory activity expanded at the fastest pace in nearly a decade in July as domestic demand continued to improve after the coronavirus crisis. However, employment and export orders remained weak, with export orders falling for a 7th straight month as overseas demand is yet to pick up.
Not just Tik Tok
Rising US – China tensions are posing another threat to sentiment after President Trump hinted to a widening of measures against Chinese owned software which is deemed to pose a threat to national security. So far Tik Tok is in the firing line, however recent comments from the White House suggest an expansion in targets beyond the video sharing app; a move which will continue to stir tensions between the world’s two largest economies.
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