Unlike the first trading days of 2016, when sales of Chinese stocks alarmed investors around the world, the second largest economy in the world today has become a "source of strength" for global markets.
The Purchasing Managers Index (PMI) in the manufacturing sector of China by Caixin (Markit) in December 2016 rose to its highest level since January 2013 - from 50.9 to 51.9. Official data released on Sunday by the State statistical management of China showed that in December, PMI in the manufacturing sector of the country amounted to 51.4, which is lower than the November figure (51.7). The index exceeds the mark of 50 for the fifth consecutive month.
Investors hope that "China's economy is strong enough to ensure that the country could continue its economic reforms in 2017», Bloomberg writes.
Meanwhile, the US dollar index rose today by 1% to a level not seen since 2002. Most analysts expect that the dollar will continue to strengthen in 2017, as the US economy is likely to withstand repeated tightening of monetary policy by the Fed, which should increase the attractiveness of dollar-denominated assets.
Oil prices reached an 18-month high on the news that Kuwait began to reduce oil production. The prices of copper and nickel also rose.
The european stocks rose for the third consecutive session: the Euro Stoxx 50 gained 0.4%, the leaders of growth being the companies of the banking and industrial sectors.
In the evening, the US will publish the indexes of business activity by Markit and the ISM for the manufacturing sector for December. According to the forecasts, both indicators will show growth. If the expectations are met, the market will demonstrate another convincing argument in favor of raising rate by the Fed at one of its next meetings - and, therefore, a reason to buy the dollar and dollar assets.