China’s February PMI Fell Short of Market Expectations
China’s Caixin Manufacturing Purchasing Managers Index (PMI) fell to 50.9 in February, the lowest level since June last year, and below market expectation of 51.3, but it was the 10th consecutive month of expansion above 50. Caixin said that although the recovery momentum of the mainland manufacturing industry has weakened, companies are more optimistic about the future prospects. The market outlook should pay attention to inflation trends and major policy challenges.
Australia’s Terms of Trade are Gradually Improving
The Bank of Australia announced that the Australian Commodity Price Index calculated by Special Drawing Rights (SDR) in February continued to rise by 23.9% year-on-year to 113.3, an increase of 3.4 index points from the previous month, marking the eighth consecutive month of increase and setting a record high. Iron ore and coal accounted for 29.5% and 21% of the index respectively, and together accounted for more than half of the index. Therefore, the recent high iron ore prices are helping to improve Australia’s terms of trade and strengthen the market’s interest in Australia, longing for the prospects of trade.