While this figure is still contractionary (below 50) frankly I don't know what the market wants at this point: weaker readings = more easing down the road from Chinese authorities, etc versus stronger readings = no hard landing.
That is the last piece of economic news of the year as tomorrow should be quiet.
- HSBC Purchasing Manager's Index, designed to preview the state of Chinese industry before official output data are published, inched up to 48.7 in December from a 32-month low of 47.7 in November but fell short of the flash reading of 49. The HSBC PMI has been mostly under 50, which demarcates expansion from contraction, since July.
- Underlying indices showed softening demand at home and abroad, according to the data collated by UK-based information firm, Markit. The sub-index for overall new orders edged up to 46.9 in December from November's 45, but still signaled falling demand. New export orders also shrank. "While the pace of slowdown is stabilising somewhat, weakening external demand is starting to bite," said Qu Hongbin, China economist at HSBC.
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