Global Market – U.S. & China’s economic data – Mix picture
This week we will discuss U.S. and China’s economic data which continue to give mix indication and two different strategies by world’s top two economy. U.S. continue to witness robust growth and inflation is key concern and on the other hand for China – recession & slowdown remain key concern.
U.S Economic data & key takeaways
U.S. economic data released this week indicates mix set and which will influence decision making for interest rate in upcoming FOMC meeting on 20-Sep-23. As guided by U.S. Fed chair Jerome Powell – Fed may pause at September meeting and wait for incoming data.
China’s Economic data & Steps
China’s Caixin manufacturing PMI came at 51 Vs expectation of 49 while PMI data released a day earlier came at 49.7 Vs estimate of 49.1.
China last week reduced tax on stock trading to boost confidence for the first time since April 2008. China’s central bank will trim the amount of foreign currency deposits banks are required to hold as deposits.
Equichain Wealth Advisors: Market View & Opinion
Recent steps by China could provide boost to consumption which will result in increase in commodity prices such as Crude oil & Metal. In this week, crude oil and metal prices have been rising. This increase in commodity prices will result in high inflation globally and increase worry for U.S.
Global market continues to indicate mix picture whereas Indian story is getting strong day by day. U.S. market continues to remain resilient where as China’s market is showing sign of stabilizing after measures of steps taken by Chinese government. We expect some positive move for global market in the month of September 2023.