International News – 6 November 2015
Data indicated China’s service activity picked up pace in October, indicating recent stimulus measures may be working.
Wednesday’s data showed China’s PMI rose to 52.0 in October compared to its September PMI figure of 50.5, which was at 14 month lows.
The increase in PMI from September through to October suggests the economy has begun stabilizing which clearly reduces the need for any further stimulus in the near term.
USA PMI data was also released to the market this week and continued to show signs of strong performance.
The seasonally adjusted Composite PMI index posted 55.0 in October and whilst unchanged from September, still indicates a strong growth rate.
Employment continued to rise, whilst input costs continued its downward trend providing further support for a raising of interest rates at the Feds December meeting.
The market is now pricing in a 56% chance of a raising of the interest rates when the Fed meet in 2 weeks.
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