US stocks have posted low or negative returns this April, though markets had been surging at the start of 2017 on positive macroeconomic data.
Chinese exports in US dollar terms fell 7.7% in 2016 compared to 2015, making it the worst decline since 2009.
China’s manufacturing PMI rose to 51.8 in March 2017, compared to 51.6 in February 2017. This signals the stabilization of China’s economy in 2017.
Retail sales of consumer goods totaled 8.5 trillion yuan (~$1.3 trillion) in 1Q17, according to the National Bureau of Statistics.
The US trade deficit with China decreased 5.5% to $347 billion in 2016, compared to $367 billion in 2015.
China’s fiscal revenue growth has picked up since the beginning of 2017, as the country has seen surging prices and improved economic growth.
The Chinese economy is expected to grow 6.5% in 2017 as it undertakes fiscal stimulus measures and monetary policy changes. China is currently struggling to improve the pace of its economic growth.
Goldman Sachs’s (GS) equity strategist said in a recent interview with CNBC that he believes the financial sector (XLF) (VFH) and the technology sector (XLK) show promise.
The improved growth in emerging markets was led by a cyclical recovery in Brazil (EWZ) and Russia (ERUS).
Emerging markets started on a weak note in 2016, as equities dropped in concert with concerns around China’s economy and falling oil prices.
Emerging markets are becoming increasing important in the global economy, as they account for about 75% of global output and consumption.
The most important indicators for this week are the US consumer price index and US retail sales.
India’s services PMI stood at 51.5 in March 2017, compared to 50.3 in February 2017, meeting market expectations.
Japan’s manufacturing PMI stood at 52.9 in March 2017, compared to 51.3 in February 2017, meeting market expectations.
The final UK Services PMI stood at 55 in March 2017 compared to 53.3 in February. The PMI figure was above market expectations of 53.5.
Caixin China’s services PMI (purchasing managers’ index) stood at 52.2 in March 2017 compared to 52.6 in February.
The final Eurozone services PMI (purchasing managers’ index) stood at 56 in March 2017 compared to 55.5 in the previous month.
The final Markit France services PMI stood at 57.5 in March 2017 compared to 56.4 in February. This was below than the initial estimate of 58.5.
The March US services PMI report indicates softness in the US business environment. The PMI stood at 52.8 in March compared to 53.8 in February 2017.
The final Markit Germany services PMI (purchasing managers’ index) stood at 55.6 in March 2017 compared to 54.4 in February 2017.