1. Hello Guest Do you know binary.com offers exclusive $20 No Deposit Bonus for FX Binary Point visitors? Click here to sign up

China: MNI business sentiment index falls below 50 in November - Nomura

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 19, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Joined:
    Oct 7, 2015
    Messages:
    27,524
    Likes Received:
    0
    FXStreet (Delhi) – Research Team at Nomura, notes that the Chinese MNI business sentiment index fell by 5.7 percentage points (pp) to 49.9 in November from 55.6 in October, much weaker than the average drop of 0.3pp from October to November over 2010-14.

    Key Quotes

    “The large decline in the MNI index, together with other weak high-frequency data (Figure 1), suggests that growth momentum remains soft. We expect the official PMI (due 1 December) to dip to 49.6 in November from 49.8 in October.”

    “We maintain our forecast for real GDP growth to slow to 6.4% y-o-y in Q4 from 6.9% in Q3 as non-financial sector growth remains weak and the outsized financial services’ contribution to growth fades.”

    “We continue to expect a moderate fiscal stimulus from the central government, with policy banks playing a critical role in financing. The People’s Bank of China will likely maintain an accommodative monetary policy stance, though the pace of easing may slow after the cuts to both the RRR and benchmark interest rates on 24 October.”
    For more information, read our latest forex news.
     

Share This Page