Reminding that tonight at 9 PM the flash PMI manufacturing will be released.
This Purchasing Manager Index is a survey of several purchasing managers, which generally measures the condition in a certain industrial sector. There are 2, manufacturing & non-manufacturing (services).
The PMI has a baseline of 50, where if above it indicates that the industrial condition is growing/expanding, while below 50 means the industry is experiencing slowdown/contraction.
The manufacturing PMI will be of greater concern because the manufacturing sector is labor-intensive.
The effect on the market, when manufacturing grows, companies have the opportunity to gain profit, and workers may also receive income increases.
Profit increases will attract investors, triggering a risk-on sentiment. It will also automatically raise the company's valuation.
In addition, with the aforementioned risk-on sentiment, crypto will also tend to follow suit in a bullish manner.
What if the PMI decreases? Then you can interpret it the other way around.
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