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China HSBC flash PMI remains in contraction – TradeTheNews

FXStreet (Barcelona) - The TradeTheNews Team, reviews the Chinese HSBC flash Manufacturing PMI data release, noting that the it registered at contraction for the 5th straight month, with HSBC economists noting that there remains plenty of scope for easing.

Key Quotes

“Investors were also having a tough time establishing a trend after the release of China flash manufacturing PMI figure, which missed consensus and remained in contraction for the 5th straight month. New Orders and Employment trends were still on the decline but at a slower rate, while New Export Orders component turned to a "decrease" from "increase”."

“HSBC economist noted the figures "pointed to a further deterioration in operating conditions in April, with production declining for the first time in 2015" and suggest softer demand domestically and overseas.”

“On the bright side, HSBC said, the data is "leaving plenty of scope for the authorities to implement further stimulus measures," which helps explain Shanghai Composite quickly reversing initial plunge to rally over 1% for the morning session.”

“Also of note in China, Premier Li stated the country does have the ability to meet 2015 GDP target of about 7%.”

“China May Flash HSBC Manufacturing PMI: 49.1 V 49.3E (5th consecutive contraction)”

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