Good morning, and welcome to our information on the global economy, financial markets, the eurozone and trade.
There is an autumn in the air this morning, but investors are warming back to stocks after a encouraging improvement in Chinese factory earnings.
Government figures released over the weekend show that profits in China’s manufacturing companies have grown for the fourth month in a row. In August alone, they rose 19.1% year-on-year as the world’s second-largest economy continued to recover from the shock of the Covid 19 epidemic.
That means industry profits so far this year are 4.4% lower than in January-August 2019 – In view of the turmoil in the world economy, a recovery.
Raw material manufacturers, equipment makers and power producers all recorded solid jumps in particular profits
Statistics show that China’s recovery has accelerated over the summer as Beijing’s stimulus efforts begin.
This is a welcome sign for markets amid fears that Europe’s recovery could be exacerbated by the rising number of Covid 19 cases over the next three months.
Stephen Innes of AXIcorp explains:
The profits of China’s major industrial companies were on a steady path to recovery in August. In fact strong revenues in China’s massive manufacturing and operating machinery provided further evidence for a strong economic comeback.
The data is good China Growth story and perspective on commodity prices.
So, after losing ground last week, European stock markets will rise again this morning. England FTSE 100 Friday was flat with a four-month low, with a profit of more than 1% expected.
Asia-Pacific indices have already recorded gains with Japan Nikki 1% rise, China’s CSI 300 0.6% and that of South Korea Cosby Raises 1.3%.
Still comes today
Christine Lagarde, President of the European Central Bank, testifies to MEPs on the eurozone economy today. He may face questions about the strength of the euro, Europe’s stuttering recovery and the possibility of another ECP stimulus package soon.
- 2.45 pm BSD: ECP presents to the Icon Committee of the European Parliament. President Christine Lagarde testified