Fragile rebound on financial markets. PMIs point to China’s economic slowdown

After a tough day and even a tough week that saw the main equity markets losing between 3 and 4%, Asian markets posted strong rebounds overnight, but this looks fragile, as the release of the Chinese January PMIs yesterday pointed to clear economic slowdown linked to restrictive measures put in place in order to address the resurgence of the pandemic. Moreover, the offer made by Republican senators to back a limited stimulus plan does not bode well for a broad bi-partisan support for the $1.9tn plan of Mr. Biden. And finally, the easing of tensions between the EU and AstraZenaca cannot hide the fact that there are serious doubts about the vaccine’s efficiency for people above 65, that is to say for people who need it! The EUR/USD pair is stable which seems to reflect caution rather a true comeback of optimism.