International Monetary Fund's chief economist Pierre-Olivier Gourinchas spoke with Reuters.In brief: Too early for BOJ to tighten monetary policy as re-anchoring inflation expectations to its 2% target will take timeBOJ must stand ready to tighten monetary policy if...
The ECB warning on bond market impacts of BOJ policy change is getting a rerun in Asia
On Wednesday the European Central Bank released its quarterly Financial Stability Review.In it the Bank warned that policy normalisation by the Bank of Japan could test the resilience of global bond markets."Inflation in Japan has been increasing over the past year,...
ForexLive Asia-Pacific FX news wrap: China’s 2nd Manufacturing PMI beats, into expansion
The key data focus for the session here in Asia-Pacific today was the Caixin / S&P Global Manufacturing PMI for May 2023. This was expected to remain in contraction, especially following yesterday’s very disappointing official PMIs, those for China’s National...
Fed’s Harker gave dovish comments on Wednesday, he is speaking again on Thursday, 1 June
High risk warning: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives,...
AUD/USD higher after the Chinese Manufacturing PMI beat
High risk warning: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives,...
US equity index futures popped on the debt limit bill passing, getting hit lower now
> US equity index futures popped on the debt limit bill passing, getting hit lower now <!--> --> Eamonn Sheridan Thursday, 01/06/2023 | 01:49 GMT-0 01/06/2023 | 01:49 GMT-0 <!--> --> An initial pop on this:Which has been reversed and then some:...
China Caixin Manufacturing PMI for May: 50.9 (expected 49.5)
Caixin / S&P Global China Manufacturing PMI for May 2023 comes in at a much improved 50.9expected 49.5, prior 49.5 alsoBoth manufacturing supply and demand improved. The job market did not. Manufacturing output grew significantly, with the related subindex logging...
Australian Capex data for Q1 2023: Headline +2.4% q/q (1% expected)
High risk warning: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives,...
US House of Representatives have passed the debt limit deal bill
Voting continues but the bill has been approved in the House.to approve a bipartisan bill to suspend the government's $31.4 trillion debt ceilingUpdate: passes 314-116Like I said earlier (many times) all indications were it would pass, and its sailed through with a...
PBOC sets USD/ CNY reference rate for today at 7.0965 (vs. estimate at 7.0964)
People's Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead.USD/CNY is the onshore yuan. Its permitted to trade plus or minus 2% from this daily reference rate.CNH is the offshore yuan. USD /CNH has no restrictions on its trading...
US House of Representatives is voting on the debt limit deal
High risk warning: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives,...
BlackRock on DM equities – earnings expectations too optimistic, economic damage ahead
BlackRock Investment Institute have a very downbeat outlook on global stock markets. On the US:We are underweight. Financial cracks are emerging from Fed rate hikes. We don’t think earnings expectations reflect the recession we see ahead.On Europe:We are underweight....
Japan Jibun Manufacturing PMI for May (final): 50.6 (prior 49.5)
Jibun / S&P Global final manufacturing PMI from Japan for May 2023 comes in at 50.6, much improved from April:preliminary was 50.8, prior 49.550.6 is the first move into expansion in 7 monthsGood results from Japan. From the report:The latest au Jibun Bank PMI...
Oil price fall – ANZ does not expect OPEC will intervene with output cuts at June meeting
Earlier on oil: ANZ say that oil market's sentiment was hit by the PMI from China yesterday indicating the country's weak economic rebound. Concerns that the post-COVID bounce has petered out. Also overnight data showing US employment vacancies unexpectedly increased....
PBOC is expected to set the USD/CNY reference rate at 7.0964 – Reuters estimate
People's Bank of China USD/CNY reference rate is due around 0115 GMT.The People's Bank of China (PBOC), China's central bank, is responsible for setting the daily midpoint of the yuan (also known as renminbi or RMB). The PBOC follows a managed floating exchange rate...
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Japan data – Q1 Business capex +11% y/y (+5.5% expected)
Japan's Ministry of Finance with the data for the January to March quarter:Corporate capital expenditure rose 2.3% q/q and 11% y/y, the Q4 2022 y/y up 7.7%up 5.5% was expected for the y/ySales +5% y/yexpected +2.3%, prior +6.1%Recurring profits +4.3% y/y expected...
UK – advertised starting salaries reached the highest level in two years
On Wednesday Bank of England Monetary Policy Committee member Mann warned of recalcitrant inflation :Via job search website Adzuna's survey comes the news that wage growth may proper up inflation further:Starting salaries advertised in Britain reached the highest...
ICYMI – Italy will set up a EUR1bn sovereign fund
Italian Premier Giorgia Meloni has confirmed the country will set up a €1 billion sovereign fund to channel funding to companies it deems strategic and to bolster domestic production and secure key supply chainsfund will “stimulate the growth and consolidation of...
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