China’s official manufacturing purchasing managers’ index (PMI) rose to 52.6 last month from 50.1 in January and was well ahead of an analyst forecast for 50.5, giving investors hope that China’s recovery can offset a global slowdown.
“Global PMI continues to point to a firmer global growth outlook – creating some upside risk to domestic activity and inflation,” Citi U.S. economic strategists said in a note on Wednesday.
As China’s economy rebounds, inflation remains high elsewhere. Data from German regions, a day after February numbers showed price pressures surged more than expected across France and Spain, bolstered expectations that the European Central Bank will push interest rates higher and previously thought.
In the U.S., the average interest rate on the popular 30-year fixed-rate home loan remained last week at its highest level since November.
“The surprises in January inflation releases have challenged hopes for a smooth return…
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