China’s lockdown strategy has led to severe problems for buyers of Chinese goods worldwide. But this was just a trailer to the more damaging impact on the global supply chain that would be caused by the economic slowdown in China
Global oil and gas prices are likely to remain at current lows for several years, with oil dropping to USD 25 per barrel if Iranian production more than offsets supply cuts elsewhere, Moody's Investors Service said today.
Meeting for the first time since it cut rates and expanded its asset purchase programme in December, the ECB is expected to warn that inflation could stay ultra-low longer than an already downbeat forecast pegged on plunging oil prices, weak Chinese growth and the lack of decisive fiscal policy action at home.
Within the Asian region ex-japan, Michael Kurtz Chief Asia Equity Strategist, Nomura is worried about the Chinese growth but is optimistic on India.
While the demand is expected to fall the supply is expected to show continuous expansion. Put simply the prices should remain under pressure
China`s official Purchasing Managers` Index (PMI) for April dipped to 50.6 from a March figure of 50.9, according to data from the National Bureau of Statistics, missing a Reuters forecast of 51.0.
Chinese growth is set to stabilize in the coming months and will slow to 6 percent in the next decade, according to new research from Barclays.
Japan's Nikkei share average rose 1.7% on Thursday to its highest close in six weeks, helped by short-covering as the quarter-end neared, although it was still on track for the worst quarterly performance in two years.
Even as traders warn that a shock attack on Iran, a release of emergency oil reserves or a slowdown in Chinese growth could roil the market at any time, options prices suggest that demand for protection from such risks has fallen away.
Stronger-than-expected Chinese growth data spurred concern on Thursday about tighter monetary policy, prompting a sell-off in equities led by emerging markets.