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Analysts at Danske Bank note that the Chinese PMI manufacturing from Caixin for February surprised to the upside and gave the clearest sign so far that a bottom is forming in the Chinese business cycle.

Key Quotes

“The index jumped 1.6 points from 48.3 to 49.9 and the new orders index increased from 47.3 to 50.2. It follows the official PMI manufacturing yesterday, which also showed a decent rise in new orders despite a decline in the overall index.”

“We continue to look for a gradual recovery for the rest of 2019 on the back of stimulus and a trade deal with the US. Thus, it seems that the recent fiscal expansion and monetary easing has had positive effects on the Chinese economy.”