China industrial production and retail sales data for August 2023. Very nice beats for both.More: China Jan-Aug Fixed-Asset Investment +3.2% Y/Y (Reuters poll +3.3%)Jan-Aug Private Sector Fixed-Asset Investment -0.7% Y/YJan-Aug Infrastructure Investment +6.4%...
Another rate cut from the People’s Bank of China, 14 day reverse repo to 1.95% from 2.15%
From China so far today:Buried in amongst that lot (the reference rate post) is the news of another rate cut from the Bank:PBOC sets 14 day RR rate at 1.95% vs. 2.15% previouslywe haven't had a 14-dayer in many monthsStill on the way from China is the economic data...
China August new home prices -0.3% m/m (prior month -0.2%)
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,...
People’s Bank of China set MLF rate at 2.5% (expected 2.5%, prior 2.5%)
PBOC inject 591bn yuan via a one-year MLF at 2.5%400bn yuan of MLF are maturing todaythus net MLF injection is 191bn yuanAlso:PBOC sets 14-day RR rate at 1.95% vs. 2.15% previously --The PBOC's MLF rate is a benchmark interest rate that banks in China can use to...
PBOC sets USD/ CNY reference rate for today at 7.1786 (vs. estimate at 7.2849)
The 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...
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It’s a big day coming up in China – economic data and the monthly rate setting (MLF)
The backdrop to the data due today and the monthly Medium-term Lending Facility (MLF) rates setting are the twin moves from the People's Bank of China on Thursday:The PBoC set the MLF rate on the 15th each month. The PBOC's MLF rate is a benchmark interest rate that...
Chinese state-linked developer Sino-Ocean has suspended payment on all its offshore debts
Another China property sector casualty.Earlier this week state-backed Sino-Ocean Group Holding Ltd. halted trading in a local note that matures in two weeks, flagging “significant” uncertainty in repaying that security. Up until recently the firm had been viewed by...
PBOC is expected to set the USD/CNY reference rate at 7.2849 – 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...
Goldman Sachs on the ECB interest rate hike, rates will be unchanged for next 12 months
Goldman Sachs says that despite showing the EU economy is stagnating the rate inflation is "too high for comfort", which supports the case for the European Central Bank holding rates unchanged at the current high level for the next year. GS points to the ECB raising...
Brent oil – JP Morgan on the price jump – clearly a supply shock
Earlier in the week an analyst at JP Morgan said that:"investors should probably not worry too much about the recent spike in oil."Adding that pressure on the demand and supply side is easing:long-term investment into energy transition will dampen demandthe US...
Bank of America expect the US to avoid a government shutdown, but its close to 50% chance
Bank of America expects Congress to pass a continuing resolution and thus avoid a government shutdown on October 1.BoA say, though, that its a 'close call':situation remains fluidlikelihood of a shutdown, a brief one, is edging closer to 50%-This reminds me of that...
New Zealand manufacturing PMI for August 46.1 (prior 46.3)
BusinessNZ Performance of Manufacturing Index (PMI) is mired well under its longer run average of 53.0.BusinessNZ’s Director, Advocacy Catherine Beard: “While the key sub-index components of New Orders (46.6) and Production (43.9) improved slightly from July, the...
EU to probe China EV subsidies. China retaliates, extends anti-subsidy duties on EU import
The European Union is investigating China’s subsidies for electric vehicles that impact by lowering the price of such vehicles in the EU. China hit back within hours, it will extend anti-subsidy duties on potato starch imports from the European Union for the next five...
UBS on the European Central Bank rate hike – focused on the wrong thing
UBS say that the rate hike from the ECB is likely to be its last for the cycle. UBS analysts are not impressed with the European Central Bank, saying the Governing Council "is more focused on the present than the direction the economy is taking". ICYMI:MoneyMaker FX...
Citi is forecasting a Federal Open Market Committee (FOMC) interest rate hike in November
Info comes via Reuters. Citigroup is with the consensus forecasting no Fed Funds change at the September FOMC meeting, but to raise the rate in November by 25 bps. Citi had previously forecast a September hike but say recent inflation data has led it to expect a...
China’s PBOC have been busy: Cut its RRR, ‘asked’ banks not to buy dollars. Panicking?
They've been busy little bees at the People's Bank of China.Justin had the news on two moves from the Bank:andOn the Reserve Requirement Ratio (RRR) cut, this is sort of encouraging news on the one hand and sort of concerning on the other hand. On the plus side ......
JP Morgan raise their forecasts for iron ore citing ‘resilient’ China
JP Morgan analysts with a note on mining stocks, Rio Tinto and others re iron ore are being viewed favourably.On China JPM have this to say:China steel demand has proven more resilient as infrastructure demand offsets poor property sector demand (both ~30% of China...
Forexlive Americas FX news wrap: Euro falls to the lowest since March after ECB hike
Markets:S&P 500 up 0.9%Gold up $3 to $1909US 10-year yields up 3.8 bps to 4.29%WTI crude oil up $1.96 to $90.48CAD leads, EUR lagsWe've been in the doldrums for awhile but the combination of a Chinese RRR cut, another round of strong US economic data and signals...
Economic calendar in Asia – Friday, 15 September 2023 – China economic data for August
The data from China due today is expected to show some improvement. there have been plenty of indications that there are some green shoots poking through. Also, the latest Citi Economic Suprise Index re China is showing data is beating pessimistic estimates. Coming...