NIO Inc – ADR (NYSE:NIO) shares are trading lower by 2.02% to $7.26 Wednesday morning. Concerns over China’s economic recovery continue to negatively impact the sector following worse-than-expected purchasing managers’ index (PMI) data. Shares of several Chinese stocks are also trading lower in reaction to concerns over a COVID wave in China.
According to Bloomberg Markets, the National Bureau of Statistics announced on Wednesday that the official manufacturing PMI dropped to 48.8. A PMI reading below 50 indicates a contraction compared to the previous month.
This reading, the lowest since December 2022, was below the median estimate of 49.5 in a Bloomberg survey of economists.
“This adds to indicators since April that suggest that the economic recovery momentum has continued to slow,” Ho Woei Chen, an economist, told Bloomberg Markets.
“There’ll be pressure for monetary policy support to be stepped up given the weak domestic inflation.”
What Else?
Per a recent report by CNBC, COVID infections could reach as many as 65 million cases per week by the time the surge peaks at the end of June.
Respiratory disease specialist Zhong Nanshan shared data on the new wave of infections during a recent medical conference in Guangzhou, as reported by CNBC.
Per CNBC, Zhong Nanshan indicated that the wave, which commenced in late April, was expected, with his modeling suggesting a potential surge of around 40 million weekly infections in China. He further projected that by the end of June, the weekly number of infections would reach its peak at 65 million.
According to data from Benzinga Pro, NIO has a 52-week high of $24.43 and a 52-week low of $7.33.
