Cling Seng and ASX 200: Markets Combined Amid US Economic system Jitters, China Optimism…

US Companies Sector Contracts

On February 21, the US companies sector took heart stage. The S&P World Companies PMI unexpectedly dropped from 52.7 in January to 49.7 in February, signaling a sector contraction. Accounting for round 80% of US GDP, February’s information heightened fears of a pointy financial slowdown, triggering a flight to security.

S&P World Market Intelligence Chief Enterprise Economist Chris Williamson emphasised the importance of the February survey, stating:

“Whereas the survey was indicating strong financial progress in extra of two% late final 12 months, the February survey indicators a faltering of annualised GDP progress to simply zero.6%.”

US Banks Flip Bullish on China Shares

Regardless of ongoing uncertainty a couple of full-blown US-China commerce struggle, US banks are bullish on Mainland China’s fairness markets.

On Monday, February 24, CN Wire reported:

“Goldman Sachs stays obese on China’s A shares and H shares. Developments in synthetic intelligence will proceed benefiting H shares from the elemental and liquidity views, the analysts say, and see room for A shares to catch up and slender the return hole with H shares. H shares might proceed being favored as international funds increase their allocation in China, they add.”