China official manufacturing PMI to show signs of stabilisation

Over the coming weeks we should get more tangible signs of a global growth pick-up as China begins to show signs of stabilisation and the US economy accelerates. 

Recent measures by China's authorities, such as scrapping the 75% loan-to-deposit ratio cap and resuming liquidity injections via the 7-day reverse repo rate, will likely support liquidity and encourage bank lending over the coming quarters. We are also beginning to see the impact of previous easing as growth indicators stabilise. 

"We think the official manufacturing PMI due to be released on 1 July inched up to 50.3 in June from 50.2 in May",said Standard Chartered in a report on Friday.