China: Flat official PMI points to stabilisation at a low level

By FXStreet FXStreet (Bali) – According to Nomura Research Analysts, China’s flat official PMI during the weekend (49.8 actual vs 50 exp.) points to stabilisation at a low level.

Key Quotes

“The official PMI remained at 49.8 in October, unchanged from September, implying growth momentum may have stabilised, albeit at a low level.”

“Nomura’s China growth pulse table continues to show more declining than rising indicators for October, pointing to strong headwinds.”

“We expect industrial production growth to remain unchanged to 5.7% y-o-y in October and fixed asset investment growth to edge down to 10.0% y-o-y ytd.”

“On monetary policy, we expect no more interest rate or reserve requirement ratio (RRR) cuts this year, but see four 50bp RRR cuts and two 25bp rate cuts in 2016.”
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Source:: FX Street