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Analysts at Danske Bank point out that China’s leadership pledged to act after China’s economy exhibited further signs of weakness  as the official manufacturing PMI fell to its lowest level in two years.

Key Quotes

“The official manufacturing PMI dropped to 50.2 (consensus: 50.6) in October from 50.8 in September. Especially new export orders were very weak highlighting the negative effect of the trade war with the US.”

“We look for more weakness in coming quarters before a rebound next year when the stimulus kicks in more, and we expect to see a trade deal at some point in 2019.”