China’s manufacturing Purchasing Managers’ Index (PMI) hit 51.2 in September, exceeding expectations of 50.3. This suggests potential growth in the manufacturing sector for the period analyzed. Readers should carefully research before making any financial decisions. The information provided does not serve as a recommendation or advice for buying or selling assets.

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Investing comes with significant risks, including the possibility of losing your entire investment, as well as emotional impacts. Readers are responsible for evaluating these risks. The article and its author have no personal investment in the stocks mentioned. The information from FXStreet and the author does not guarantee accuracy or completeness. FXStreet and the author are not responsible for any errors or losses from using this information. They are not registered advisors, and this article should not be considered investment advice. Today’s unexpectedly strong manufacturing data from China for September is a positive sign for industrial commodities. The PMI of 51.2 shows solid growth, directly challenging previous fears of a global slowdown that emerged earlier in 2025. In response, copper prices on the London Metal Exchange rose by 1.5%, crossing $9,800 per tonne.

Future Market Impacts

In the coming weeks, we can expect more activity in derivatives related to raw materials. This includes call options on major miners like BHP and Rio Tinto, as well as crude oil futures, which have been stable for most of the third quarter. This marks a shift from the cautious sentiment seen during the summer of 2025. The Australian dollar, a key indicator of China’s economic health, is likely to strengthen further due to this news. It has already risen past the 0.6850 mark against the US dollar this morning. This supports the outlook that the Reserve Bank of Australia will keep rates steady, especially since August’s inflation remained stubbornly high at 3.8%. We can also expect a positive impact on equity indices that rely heavily on Chinese demand. Futures for Hong Kong’s Hang Seng index are already showing a higher opening, building on the modest recovery from last week. Derivative strategies on Germany’s DAX index may also be favorable, given its manufacturing sector’s historic sensitivity to Chinese imports. This data helps reduce some of the uncertainty that has been affecting markets since the global growth concerns in spring 2025. As a result, we may see a slight decrease in implied volatility for commodity and currency options related to this situation. Traders might explore strategies like bull call spreads to gain exposure while managing premium costs. Create your live VT Markets account and start trading now.

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