Analysts at TD Securities think that sentiment among manufacturers likely improved in July but not enough to move back into expansion for the Chinese economy.

• “We expect the PMI to edge higher to 49.9 in July from 49.4 in June, as the impact of the US-China trade truce filters through. Also despite a weak Q2 GDP outcome, activity indicators picked up momentum in June, which likely carried through into July amid ongoing easy liquidity and phased cuts in the RRR for small and medium-sized companies.”