Global stocks’ rally stalls on upsetting Chinese industry readings


by   |  VIEW 116
Global stocks’ rally stalls on upsetting Chinese industry readings

On Friday, the 1st of February, 2019, the global stocks inched down from their highest peaks in two months, as data revealed on Friday (February 1st) displayed dismantling figures of Chinese industry activity.

As the stocks have wielded gains this week from the downcast Fed comments and an unaltered interest rate, alongside optimism over an affirmative outcome on US-China tariff talk, the global stocks had closed the week on the green, despite steep pull back at the end of the week.

As the Caixin Index of Chinese Manufacturing plunged to its lowest levels since February, 2016, the upcoming week might not be as cheering as it had been throughout this week.

Followed by the release of faltered Chinese Manufacturing data, which rekindled the debarkations of dwindling global growth, the MSCI’s All Country World Index, that tracks markets of 47 countries, had shredded off earlier gains and came off of its highest levels since December 4th, after posting its record January gain of 7.79 percent.

The much-weakened Chinese factory readings had mainly hurt the Asia-Pacific shares, as the MSCI’s broadest index of Asia-Pacific shares outside Japan had been 0.2 percent down, after reporting a 7.2 percent gain in January.

Earlier in the Asia-Pacific trading session, the Australian Dollar, which conventionally used as a rear-view mirror of investors’ sentiment towards Chinese economy, had dwindled as many as 0.6 percent.

However, the stocks alongside Australian Dollar rose, oversighting the Chinese factory figures, after US president Donald Trump had said that he would meet the Chinese President Xi Jinping soon to try to seal a rational trade deal.