By Tim Seymour
While you were sleeping over the weekend, China released a non-manufacturing PMI that came in at 60.1. This was a huge rebound from the previous month.
Naturally, the number slipped out over the weekend, when global traders were unable to take immediate advantage of the data — much less pay much direct attention.
February’s non-manufacturing PMI was the lowest since 2009, so this is a huge bullish reversal for China’s consumer economy.
It is true that China is still a manufacturing-driven market, but the non-manufacturing side is not exactly insignificant. If last week’s manufacturing PMI was not bad for the export-driven funds like FXI, this number looks terrific for consumer funds like CHIQ:
Note: China has very important trade numbers due out at the end of the week.