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Investors on PMI watch

Published Wednesday, April 23rd, 2014

It’s monthly PMI time again and the latest preliminary figures from China don’t make for encouraging reading. The HSBC/Markit flash PMI for April rose slightly to 48.3 from March’s reading but still signalled that manufacturing activity in the world’s second biggest economy contracted for a fourth consecutive month. This is the latest sign of a slowdown in the Chinese economy and comes a day after the yuan hit a 14-month low against the dollar as the government takes steps to avoid a hard landing.

Investor sentiment remained firmly in risk-on mode as solid US corporate earnings and deal-making activity among Big Pharma buoyed global equity markets. Wall St posted its sixth straight session of gains as the Dow and S&P both gained 0.4%. Signs that the recently agreed Ukraine peace deal was faltering did little to dent risk appetite even though it prompted Kiev’s acting President to call for a new anti-rebel offensive. The US did its bit to beat the drum as it threatened to impose further sanctions on Russia if tensions fail to de-escalate.

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Posted by Tamas Varga

Tamas Varga has been in the oil industry since 1992 and with PVM for 18 years. During his time in the industry he has gathered a range of experience in the oil markets. At PVM Tamas is in charge of data collection and analysis.