Put away the good China
Yesterday, we talked about the Chinese intervention in their stock market and that there could be some reticence to invest with gusto. And this morning we learn that Chinese manufacturing activity has fallen to a low of around a year and three months. This underlines more concerns about the ability for China to turn a corner and return to some stronger figures.
The GBPEUR has continued to ebb away from the highs that we saw earlier in the week as the necessary actions to secure bailout funding are slowly being done. As the risk of non-compliance fades, so too does the aggressive strength of the Pound versus the Euro. The GBPUSD has also taken a significant hit overnight and today we open around a cent and a half lower than yesterday’s trading figure.
At the end of the working week, you could be forgiven for feeling tired and as if there’s not enough time in the week. Spare a thought, though, for Greek Prime Minister Alexis Tsipras. He has the unenviable situation where he is both trying to stem a potential in party rebellion where he is seeking funding on terms that contravene the ethos of their manifesto when they came to power and also dealing with sceptical lenders for a possible 86 BILLION Euros in funding. However, the Greek people remain supportive of him – polls show him being popular as a person and PM, but that would be little comfort when his own party is difficult to contain.
In terms of data, we have already seen Eurozone manufacturing purchasing managers’ index and UK mortgage approvals this morning. The Eurozone purchasing managers’ data was slightly negative across a range of measures which will undermine confidence in the currency further, no doubt. The UK data revealed a small increase in mortgage approvals but not a lot of market reaction to this. The remainder of the day sees very little in terms of vital news.