The value of Chinese factories grow at the best rate in 3 years
Since the coronavirus pandemic began last year, China, despite the fact that the pandemic began there, seems to be recovering among the best.
After the strict measures imposed on its population, China quickly emerged from this crisis and began work on supplying the world with tests and sanitary material manufactured in its factories, putting Beijing and its economy in a dominant position. Demonstrating once again the change in the framework of global geopolitics from the traditional European American alliance to the Asia Pacific, which seems to now be the main battlefield as demonstrated by the trade war initiated by Donald Trump against China.
Last night, we learned that the value of Chinese factories exceeded analysts' expectations by rising higher than expected year-on-year, at a rate not seen since 2018, demonstrating the strength of the Chinese economy despite the current situation. Specifically, this rise was 4.4% compared to the 3.5% expected.
The Chinese economy is one of the great beneficiaries of this crisis, experiencing strong stock market growth. In 2021, the Hang Seng index only rose 5.39%, due to the sharp falls that have occurred since mid-February due to growing tensions between Beijing and the Joe Biden administration.
If we look at the chart, technically speaking, the fall from the highs coincides with the fulfilment of the negative divergence that we can observe on the daily chart between the price and its MACD and Stochastic oscillators, which has led the price to fall back to the 38.2% Fibonacci level of the last upward momentum that began in September 2020.
Despite the good macroeconomic news from the Asian country today, the Hang Seng has fallen by 1.10% after approaching the retracement level of the 23.6% Fibonacci thus supporting its 18-session black moving average.
Source: Admiral Markets MetaTrader 5. Moderna daily chart. Data range: from December 16, 2019 to April 9, 2021. Prepared April 9, 2021 at 1:25 p.m. CEST. Keep in mind that past returns do not guarantee future returns.
Price evolution in the last 5 years:
- 2020: -3.40%
- 2019: 9.07%
- 2018: -13.61%
- 2017: 35.99%
- 2016: 0.39%
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