Top 5 Charts Of The Week: China, Global Trade, Reflation, And Asian FX

Here are some of the standout economic and markets charts on my radar. I aim to pick a good mix of charts covering key global macro trends, and ones which highlight risks and opportunities across asset classes.

1. Manufacturing PMI - China vs the USA:  The November PMI data showed the US economy chugging along at a solid pace, and China's economy continues to lose momentum. Perhaps a salient chart gave the weekend's "news" of the trade war ceasefire (my take = constructive skepticism... i.e. we'll see).

2. China Economic Policy Uncertainty:  Another November monthly stat - the economic policy uncertainty index for China. It moved up to its second highest level, which reflects the cyclical headwinds, political cross-currents, and structural challenges. But there is a silver lining in this one, because part of the uncertainty gravitates around what/when/how much an eventual (my view, inevitable) stimulus program will be...

3. RWI/ISL Global Shipping Container Throughput Index:  Some more good news on the global trade front, on a seasonally and working day adjusted basis, the global container throughput index in October made its first new high since January - will markets likewise take their lead from this data?

4. Asian Currency Index (equal-weighted 10 currency index vs USD):  This chart comes from my latest weekly "Global Cross Asset Market Monitor", and it's one I've been paying close attention to recently. I think this one is really interesting because we see the Asian currency index rebounding off a key support level. If this rebound can stick it could well be the sign investors are looking for with regards to Asian and Emerging Market Equities.

5. Reflation Trade Capitulation:  What a difference a year makes... across a number of macro/sentiment indicators we've seen a 180-degree flip where complacency and euphoria have given way to pessimism and softening global growth momentum. A key indicator where we've seen this play out is the reflation trade positioning indicator, which simply shows capitulation.