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Analysts at TD Securities note that China’s Caixin services PMI was soft at 51.1 (mkt: 53.5).

Key Quotes

“Official PMI non-manufacturing was 54.3, which means that both gauges are in expansionary territory. On the other hand, manufacturing PMIs released last Friday fell into contractionary territory (Caixin 49.9 and official PMI 49.2).”

“Premier Li delivered his annual report to the National People’s Congress. The GDP target was set at a range of 6-6.5% for 2019, a departure from the previous practice of providing a point estimate, which was ‘around 6.5%’ for 2018. Also announced was wide ranging tax cuts, particularly reductions in VAT targeted primarily at the manufacturing sector worth RMB 800b, which should boost corporate earnings.”