Latest news with #manufacturingPMI
Hindustan Times
3 days ago
- Business
- Hindustan Times
China's factory activity cools in May as US tariffs hit
* Caixin manufacturing PMI at 48.3 in May vs 50.4 in April * New export orders fall at fastest pace since July 2023 * Output contracts for the first time since October 2023 BEIJING, - China's factory activity in May shrank for the first time in eight months, a private-sector survey showed on Tuesday, indicating U.S. tariffs are now starting to directly hurt the manufacturing superpower. The Caixin/S&P Global manufacturing PMI fell to 48.3 in May from 50.4 in April, missing analysts' expectations in a Reuters poll and marking the first contraction since September last year. It was also the lowest reading in 32 months. The 50-mark separates growth from contraction. The result is broadly in line with China's official PMI released on Saturday that showed factory activity fell for a second month. A federal appeals court temporarily reinstated the most sweeping U.S. tariffs, a day after a trade court ruled that President Donald Trump had exceeded his authority in imposing the duties and ordered an immediate block on them. Two weeks after breakthrough negotiations that resulted in a temporary truce in the trade war between the world's two biggest economies, U.S. Treasury Secretary Scott Bessent said on Thursday the talks are "a bit stalled". China's Premier Li Qiang last week said the country is mulling new policy tools, including some "unconventional measures", which will be launched as the situation evolves. According to the Caixin survey, new export orders shrank for the second straight month in May and at the fastest pace since July 2023. Producers said the U.S. tariffs restrained global demand. That dragged down overall new orders to the lowest since September 2022. Factory output meanwhile contracted for the first time since October 2023. Employment in the manufacturing sector declined at the sharpest pace since the start of this year, as producers cut headcount. Output prices have fallen for six straight months due to intense market competition. In the auto industry, for example, an intensifying price war in China has stoked fears of a long-anticipated shake-out in the world's largest car market. Robin Xing, Chief China Economist at Morgan Stanley, said this underscores how supply-demand imbalances continue to fuel deflation. "There is growing rhetoric about the need for rebalancing, but recent developments suggest the old supply-driven model remains intact. Thus, reflation is likely to remain elusive." Surprisingly, export charges rose for the first time in nine months, marking the fastest growth since July 2024, as companies cited rising logistics costs and tariffs. Overall, business optimism improved in terms of future output, as they expect the trade environment to improve with market expansion.
Wall Street Journal
3 days ago
- Business
- Wall Street Journal
Asian Currencies Consolidate; Trade Tensions May Support
0029 GMT — Asian currencies consolidate against the greenback in the early morning session, and may be supported by global trade tensions. U.S. assets including the dollar have come under pressure amid renewed U.S. trade tensions with China and Europe, two members of Sucden Financial's research team say in commentary. This has been compounded by U.S. manufacturing weakness, they add. They cite data released Monday showing U.S. ISM manufacturing PMI fell to 48.5 in May. USD/KRW is steady at 1,377.07; AUD/USD is down 0.1% at 0.6489; USD/SGD is little changed at 1.2853. (
Yahoo
4 days ago
- Business
- Yahoo
US Dollar: This Week's Labor Data May Offer Support Despite Lingering Trade Fears
The US Dollar fell sharply below 99 amid rising geopolitical and trade tensions. Trump's tariff hike risks reigniting trade wars, raising doubts about the US-China trade truce. Key US economic data this week, especially Friday's nonfarm payrolls, will influence the dollar's path. Looking for actionable trade ideas to navigate the current market volatility? Subscribe here to unlock access to InvestingPro's AI-selected stock winners. The US Dollar started the week with a sharp drop, falling below the 99 level and testing last week's lows. Rising geopolitical tensions, stricter US trade policies, and a packed US economic data schedule have made investors more cautious. Although the dollar saw some small gains last week, it lost those gains quickly this week due to growing political and economic uncertainty. The pressure on the US Dollar is mainly due to President Donald Trump's announcement that tariffs on steel and aluminum imports will rise from 25% to 50% starting June 4. This decision has raised fears that trade wars could return, weakening investor confidence. The move also cast doubt on the temporary trade truce reached with China in Switzerland last month. Trump accused China of breaking the deal, but China strongly denied it. It is still unclear whether the two leaders will meet soon. Kevin Hassett, head of the US National Economic Council, said a meeting between Trump and Chinese President Xi Jinping could happen later this week. However, markets are treating this possibility with caution. Some analysts believe the US does not plan to remove tariffs completely, but the lack of clear direction is adding long-term uncertainty. The dollar index is also under pressure from concerns about slowing US growth. According to Morgan Stanley (NYSE:MS), the US economy may weaken by mid-next year, leading to expected interest rate cuts. The bank predicts the dollar index (DXY) could drop nearly 9% to around 91—a level last seen during the pandemic. The economic data scheduled for this week will be key to where the US dollar heads next. Today, markets will watch both the US ISM manufacturing PMI and manufacturing PMI data from the Eurozone. Speeches from Federal Reserve members will also be closely followed for any hints about future interest rate moves. On Wednesday, the ADP private sector employment report and the Fed's Beige Book will be released. On Thursday, the foreign trade balance and unemployment claims data will come out. The most important data point of the week will be the US nonfarm payrolls report on Friday. These reports could strongly influence the Fed's short-term policy decisions. Analysts expect job growth to slow, but the unemployment rate is likely to hold steady at 4.2%. If the data show the labor market remains strong, fears of a recession may ease, and the dollar could bounce back. On the other hand, weaker job numbers may add more pressure on the dollar. Tensions on the geopolitical front are adding to the pressure on the US dollar. Over the weekend, Ukraine carried out a large drone strike on Russian military sites, reportedly damaging nearly 40 bombers. This renewed conflict has pushed investors toward safer assets. How Russia will respond remains uncertain. Talks are expected to take place in Istanbul, but the latest attacks raise doubts about the success of any diplomatic progress. Meanwhile, markets are also watching the European Central Bank's meeting on Thursday. The ECB is expected to cut interest rates by 25 basis points. While this puts some pressure on the euro, the move may still support the euro against the dollar, given the political and economic uncertainty in the US. In short, the dollar index is currently weighed down by trade tensions and signs of economic weakness. Geopolitical risks, unclear Fed policy, and especially renewed friction between the US and China will shape its direction. Friday's nonfarm payrolls data will be one of the most important indicators this week. Although the US Dollar slowed its downward trend last week, the developments over the weekend put pressure on the index again. As the US Dollar lost its intermediate support at 99, it started to slide below the level where it has found support since April. The current trend may lead the US Dollar to test the 97.90 level once again this week. On a weekly close below this level, the index will return to the falling channel that originated in February. Thus, in the coming months, we may see that the downtrend may continue towards the 95 region and then towards the 92 level. However, the easing of trade tensions and the data releases this week that are supportive of the US economy may help the US Dollar to find support in the 98 region again. In upward moves, daily closes above 99.65 can be followed as a sign of recovery. Then, the index may be expected to move towards the 100-102 region. However, the current outlook suggests that the US Dollar may continue its downward trend rather than a recovery. *** Be sure to check out InvestingPro to stay in sync with the market trend and what it means for your trading. Whether you're a novice investor or a seasoned trader, leveraging InvestingPro can unlock a world of investment opportunities while minimizing risks amid the challenging market AI: AI-selected stock winners with a proven track record. InvestingPro Fair Value: Instantly find out if a stock is underpriced or overvalued. Advanced Stock Screener: Search for the best stocks based on hundreds of selected filters and criteria. Top Ideas: See what stocks billionaire investors such as Warren Buffett, Michael Burry, and George Soros are buying. This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk rests with the investor. We also do not provide any investment advisory services. Related articles US Dollar: This Week's Labor Data May Offer Support Despite Lingering Trade Fears US Dollar: Downside Risks Rise Amid Downbeat Economic Data Ahead of PCE This Week EUR/USD: Upside Momentum Builds as Rate Cut Delay Sparks Weakness in US Dollar Error in retrieving data Sign in to access your portfolio Error in retrieving data
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Business Standard
02-05-2025
- Business
- Business Standard
India's manufacturing PMI hits 10-month high of 58.2 in April, IIP rebounds
India's manufacturing sector hit a 10-month high in April 2025, despite the HSBC India Manufacturing Purchasing Managers' Index (PMI) only rising slightly to 58.2 from 58.1 in March, according to data compiled by S&P Global on Friday. The seasonally adjusted index signalled the strongest improvement in the sector's health since June 2024, driven by faster growth in employment, production, and stocks of purchases. This follows a dip to a 14-month low of 56.3 in February, when output, new orders, and input purchasing had slowed. Output demand, export boom drive PMI New orders, especially from overseas, rose sharply. International demand grew at the second-fastest rate in over 14 years, with businesses from Africa, Asia, Europe, West Asia, and the Americas placing more orders for Indian goods, the HSBC survey noted. Adding that factories increased production at the fastest pace since June 2024, with consumer goods leading this growth. Commenting on PMI, Chief India Economist at HSBC Pranjul Bhandari, said, "The notable increase in new export orders in April may indicate a potential shift in production to India, as businesses adapt to the evolving trade landscape and US tariff announcements. Manufacturing output growth strengthened to a ten-month high on robust orders. Input prices increased slightly faster, but the impact on margins could be more than offset by the much faster rise in output prices, of which the index jumped to the highest level since October 2013." Manufacturers optimistic on future growth About 9 per cent of surveyed manufacturers hired more workers, both permanent and temporary, to meet rising demand. Companies increased their buying activity and built up inventories to keep up with future demand. The April data showed strong optimism about future output, driven by expectations of higher demand. Companies were also more confident due to better marketing, improved efficiency, and more new customer enquiries. What is manufacturing PMI? The manufacturing PMI is a key economic indicator that reflects business activity in the sector. It is based on survey responses from purchasing managers and covers areas such as production levels, new orders, employment, supplier performance, and inventory levels. Given its forward-looking nature, PMI data is closely monitored by investors, businesses, and policymakers to assess economic trends and momentum. Industrial output recovers in March Meanwhile, industrial output showed a modest recovery in March. The Index of Industrial Production (IIP) grew 3 per cent, up from February's six-month low of 2.72 per cent. However, overall IIP growth for FY25 slowed to 4 per cent, the weakest in four years, compared to 5.9 per cent in FY24. The subdued performance highlights a broader deceleration across several industrial segments. In March, the uptick in IIP was supported by growth in electricity output (6.3 per cent) and a mild recovery in manufacturing (3 per cent). However, mining sector growth remained weak at just 0.4 per cent. For context, IIP had risen by 5.4 per cent in March 2024 and had contracted by 8.4 per cent during the pandemic-hit FY21. Reserve Bank open to rate cuts
See - Sada Elbalad
27-04-2025
- Business
- See - Sada Elbalad
Gold Prices Decline 0.2% In Local ,Global Markets Over The Course Of A Week
Waleed Farouk Gold prices in local markets fell by 0.2% during trading in the week ending Saturday evening, while the ounce fell by 0.2% during trading in the week ending Friday evening. This was due to the easing of trade tensions between the United States and China and the appreciation of the dollar, which pressured demand for safe havens. Gold prices in local markets fell by EGP 10 during trading last week, with 21-karat gold opening at EGP 4,785, reaching EGP 4,850, and closing at EGP 4,775. Meanwhile, the ounce fell by $8, opening at $3,327 and closing at $3,319. The price of a gram of 24-karat gold reached EGP 5,457, while the price of a gram of 18-karat gold reached EGP 4,093. The price of a gram of 14-karat gold reached approximately EGP 3,184, and the gold pound reached approximately EGP 38,200. According to the daily report of the "iSaaga" platform, gold prices in local markets fell by approximately EGP 5 during trading yesterday, Saturday. The price of a gram of 21-karat gold opened at EGP 4,780 and closed at EGP 4,775, coinciding with the weekly global stock exchange holiday. Gold prices in local markets witnessed sharp price fluctuations during trading this week, due to the uncertainty and ambiguity caused by the conflicting economic decisions of the US administration. Easing trade tensions between the United States and China and a stronger dollar have pressured the yellow metal. Reports that Beijing has begun exempting some US goods from its 125% tariffs have sparked optimism about a possible resolution to the trade dispute, negatively impacting safe-haven assets like gold. Tariff exemptions are a step toward calming tensions, reducing concerns about prolonged global trade disruption. However, they often put pressure on gold as demand for safe havens declines. Uncertainty, ongoing concerns about global economic growth, and aggressive central bank gold buying support gold's long-term rally. HSBC's annual Reserve Management Trends Report, conducted in partnership with the Central Banking Sector, showed that 37% of respondents plan to increase their gold allocations in the coming year. The report stated: "For most of those planning to do so, gold is viewed as a portfolio diversifier, and many also see it as a long-term store of value, a good performer in times of crisis, and a geopolitical diversifier." The report indicated that US protectionist policies emerged as the biggest risk facing central banks today—despite the HSBC annual survey being conducted before the US tariff announcements set for early April 2025, which shook financial markets. In a related context, markets are awaiting the release of the US JOLTS report for March, the first reading of GDP for the first quarter of 2025, the ISM manufacturing PMI, and April nonfarm payrolls figures. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Egypt confirms denial of airspace access to US B-52 bombers News Ayat Khaddoura's Final Video Captures Bombardment of Beit Lahia Lifestyle Pistachio and Raspberry Cheesecake Domes Recipe News Australia Fines Telegram $600,000 Over Terrorism, Child Abuse Content Arts & Culture Nicole Kidman and Keith Urban's $4.7M LA Home Burglarized Videos & Features Bouchra Dahlab Crowned Miss Arab World 2025 .. Reem Ganzoury Wins Miss Arab Africa Title (VIDEO) Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Sports Neymar Announced for Brazil's Preliminary List for 2026 FIFA World Cup Qualifiers News Prime Minister Moustafa Madbouly Inaugurates Two Indian Companies Arts & Culture New Archaeological Discovery from 26th Dynasty Uncovered in Karnak Temple
