Danske Bank analysts note that China’s Caixin service PMI index was 51.1 in October in line with the consensus expectation and slightly down from 51.3 last month.

“The composite PMI inched up to 52.0 in October from 51.9 in September. Hence, according to these data service activity in China is still deteriorating, while overall economic activity has started to pick up supported by a recovery in manufacturing activity. When we factor in a broader set of leading indicators for the Chinese economy we think there is scope for a moderate recovery in economic activity over the coming months. In the bigger picture, JP Morgan global manufacturing PMI rose to 49.8 from 49.7 in October - a small rise, but still the second consecutive month of gains.”