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Markets nervous after more weak Chinese data - business live

Discussion in 'Market News' started by Lily, Jan 6, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
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    Rolling coverage of the world economy and the financial markets, as China’s service sector posts its weakest growth in 17 months

    8.09am GMT

    In another sign of problems building in China, the country’s currency has hit a five-year low against the US dollar today.

    The offshore yuan fell to 6.6915 against the greenback, the lowest rate of exchange since at least the last quarter of 2010 and a 2.1 percent discount to the onshore yuan’s 6.5506 level.

    Race to the bottom: #China ramps up currency devaluation. Yuan Drops to lowest since 2011. pic.twitter.com/GWa8RVC9eU

    7.59am GMT

    Economists are concerned to see that China’s service sector growth ground to a halt last month.

    Zhou Hao, an economist at Commerzbank AG in Singapore, warned:

    “This sentiment gauge clearly clouds the growth outlook for China,”

    “Services have felt the heat from the economic slowdown....Spending in the Chinese New Year may lead to a rebound”.

    7.48am GMT

    This chart from Caixin shows how China’s economy took a dive in December, with service sector growth hitting a 17 month low and manufacturing actually shrinking (as we learned on Monday)

    “The headline Caixin China General Services PMI for December is 50.2, down 1 point from the reading for the previous month and reaching the lowest point in 17 months.

    The Caixin Composite Output Index came in at 49.4, below the 50-point neutral level and 1.1 points lower than November’s record. In light of the setback to services sector growth, the government needs to gradually relax restrictions in the sector. This will release the potential of supply-side reform, improve the economic structure and help with the industrial transformation and upgrading.”

    7.35am GMT

    Good morning, and welcome to our rolling coverage of the world economy, the financial market, the eurozone and business.

    Worries over China’s economy are in focus again this morning.

    This morning, three wise men came from the East to tell me that if I thought it was 'just' a manufacturing slowdown, I'd better think again

    In case u felt not enough political tension&market vol already... Nuclear test N.Korea&China weaken yuan=#stocks low pic.twitter.com/rkggbi5pbh

    Continue reading...

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