Apr 1, 2016 | Investment Advice

International News (Issue 393) – 1 April 2016

International News – 1 April 2016

China’s official manufacturing PMI figures came in at 50.2 for March providing a welcome and unexpected rebound from February’s reading of 49, which was the lowest reading since 2011.

The positive PMI figure far exceeded the economists forecast of 49.4.

The world’s second largest economy returned to growth for the first time since July last year indicating the government’s fiscal and monetary stimulus may be starting to have the desired effect.

The positive figure follows an acceleration of infrastructure spending and an increase in electronic supply chains, notably from the steel industry.

Elsewhere, in the United States we await the release of their PMI figures due to be published tonight.

Consensus forecasts are anticipating a moderate improvement from last month’s reading of 49.5

Current forecasts expect the unemployment rate to be in line with the previous month of 4.9%

Finally, as already mentioned above, US Fed Chairwoman Janet Yellen this week reiterated the need to act cautiously with respect to lifting interest rates.

Following weaker than expected growth overseas and a murky outlook for US inflation, Yellen ensured a slow measured approach would continue to be adopted, which was reinforced by comments the market can likely expect two interest rate rises this year as opposed to the four it was once expecting.

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