Chinese manufacturing data due today will set the tone for the week
Chinese manufacturing data due today will set the tone for the week. The underperformance of the Australian market can be attributed to a number of factors, interest rate concerns, political tension in Ukraine, prospect of less stimulus in the US and growth worries around China. Chinese manufacturing PMI has contracted for two straight months, and a number of economic indicators suggest that its economy has continued to decelerate. Industrial production has slowed from 10.4% in August to 8.6% in February, and fixed asset investment and retail sales have also eased. With March manufacturing data due today the market will be hoping for a positive start to the trading week. March PMI tipped to rise to 48.7 points from 48.5 points. Improved Chinese data should give the Australian mining stocks a boost, and set the tone for the rest of the week. I will be watching these numbers carefully.