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Last Update: 29-Jun-18 11:47 ET
Looking Ahead - July 2, 2018 - Caixin Manufacturing PMI (FXI)
There is a lot of focus on China these days, not only because of the trade spat with the U.S., but also because of the big losses seen in its stock market and the persistent weakness in the yuan. Accordingly, market participants will have an added interest in the Caixin Manufacturing PMI released over the weekend.
China's Caixin Manufacturing PMI Report for June (Sunday, July 1, at 9:45 p.m. ET)
- Why it's important
- The Caixin manufacturing PMI report offers insight into the level
of business activity for China's smaller manufacturers and will either
heighten or calm concerns about the pace of economic growth in China.
- The dividing line between expansion and contraction is 50.0.
- Reports on manufacturing activity in China have the ability to move commodity prices.
- Chinese authorities are taking steps to rein in speculative excess in China's property and financial markets. This report will contribute to the market's thinking about the impact (or lack thereof) of those efforts.
- China's Shanghai Composite has fallen more than 20% from its 52-week high. A disappointing Caixin PMI Report could trigger renewed selling interest and capital flight tied to concerns about growth and the trade spat with the U.S.
- A deceleration from May would feed into the market's concern about a breakdown in synchronized global growth.
- The Caixin manufacturing PMI report offers insight into the level
of business activity for China's smaller manufacturers and will either
heighten or calm concerns about the pace of economic growth in China.
- A closer look
- The Caixin manufacturing PMI report checked in at 51.1 for May, unchanged from April
- What's in play?
- China ETFs
- iShares China Large-Cap (FXI)
- ProShares UltraShort FTSE China 50 (FXP)
- Deutsche X-trackers Harvest CSI 300 (ASHR)
- ETFs for regional markets
- iShares MSCI Japan (EWJ)
- iShares MSCI Australia (EWA)
- iShares MSCI Hong Kong (EWH)
- iShares MSCI South Korea Capped (EWY)
- iShares MSCI Singapore (EWS)
- iShares MSCI Taiwan (EWT)
- iShares MSCI Malaysia (EWM)
- iShares MSCI Emerging Markets (EEM)
- Index ETFs
- SPDR S&P 500 ETF (SPY)
- Invesco QQQ Trust (QQQ)
- iShares Russell 2000 (IWM)
- SPDR Dow Jones Industrial Average ETF (DIA)
- Currencies
- USD/CNY
- USD/JPY
- EUR/USD
- S&P futures
- Commodities
- Treasuries
- China ETFs
