Chinese manufacturing weakens again
HSBC Holdings Plc’s preliminary reading of China’s manufacturing purchasing managers’ index fell to 49.5 in December, a seven-month low, from 50.0 a month earlier. A reading below 50 indicates a contraction in activity.
Employment, new orders, output and prices all declined, the report showed.
The latest fall suggests China’s central bank will need to do more to halt the current slowdown in the economy.
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RBA discussed market pricing on rates
The Reserve Bank of Australia discussed the reasons behind the market pricing in a further cut in interest rates in 2015, the minutes of the central bank’s December policy meeting show.
However, members decided “a period of stability in interest rates” was likely to be the most appropriate course to take.
Among policy makers’ concerns is the possibility the real estate market is becoming unbalanced as a result of speculation by investors – property investors accounted for over 50% of total home loans in October, data from the Australian Bureau of Statistics showed.
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U.S. homebuilder confidence remains near nine-year high
Confidence among U.S. homebuilders remains near a nine-year high, despite the latest data showing a slight decrease. The National Association of Homebuilders/Wells Fargo sentiment index decreased to 57 in December from 58 in November.
David Crowe, chief economist at the NAHB, said the sector was in “a slow march back to normal.” He added that he expects the housing market recovery to continue at “a steady, gradual pace” into 2015.
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