Positive start to the week in global markets

Global markets are following interest in risky assets outside of China. Official manufacturing PMI data in China has raised questions about the growth target. While stocks started the week positively, Chinese stocks diverged negatively due to official PMI data. While many indexes rose in Asia Pacific, Japan's Topix led the rise with 0.4 percent. China's CSI 300 is trading down 0.2 percent. Hong Kong markets are closed today for a holiday. US stock futures are also rising, while S&P 500 futures are up 0.3 percent. The dollar is starting the week in the red due to the effect of the rising euro after the French elections. The Bloomberg Dollar Index is down 0.1 percent to 1,268 points. The US 10-year bond yield is trading down one basis point to 4.386 percent. The Japanese 10-year yield is up two basis points to 1.07 percent. This week, central bank leaders will speak at a summit in Sintra, Portugal, which is considered the Jackson Hole of the European Central Bank. In addition to important ECB members, Fed Chair Jerome Powell will speak at the Sintra summit on Tuesday, and New York Fed Chair John Williams will speak at the Sintra summit on Wednesday. The UK general election will be held on Thursday. Bond investors will keep an eye on Friday's US nonfarm payrolls data. Negative signals from manufacturing PMI data in China China's official manufacturing PMI data remained below 50 for the second month in a row, confirming weak support for the economy from the manufacturing front. The official manufacturing PMI data released on Sunday remained at 49.5 in June, as in May. The new factory orders index, which fell to 49.5 among the sub-items, indicated that weak domestic demand conditions continued. The manufacturing sector remained relatively positive, becoming an important component in achieving China's 5 percent growth target this year. The Caixin manufacturing PMI announced by the private sector rose from 51.7 in May to 51.8 in June. According to Bloomberg Economics, this marginal improvement in the Caixin PMI is not enough to dispel the gloomy atmosphere in the official PMI data. According to Eric Zhu, Bloomberg China and Hong Kong economist, there is a serious risk that the 5% growth target in 2024 will not be met unless strong and swift stimulus is provided.