China’s stock market rescue brings in reinforcements
China’s “National Team”, the nickname given to state-backed entities tasked with rescuing markets, are doubling their efforts, upping purchases of exchange-traded funds (ETFs) while restricting certain undesirable activities detrimental to stock prices. So far, indices such as the A50 are rallying.
China’s ‘National Team’ may be mobilising to stabilise its crumbling equity markets
China’s ‘National Team’ – a collection of state or quasi state-backed entities tasked by the government to smooth out financial market ructions when the prevailing price action is deemed desirable – looks like it may have been mobilised with China’s A50 ripping higher late Thursday and going on with the move today.
USD/CNH down, A50 up as weak Chinese inflation keeps stimulus hopes alive
Chinese inflationary pressures remain weak, whether it be upstream or for consumers. But with expectations for further stimulus from the Chinese policymakers baked in the cake, does it have implications for China’s equity market or currency?
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USD/CNH, AUD/JPY: China ‘data dump’ relieves pressure on yuan, Australian dollar
China’s August “data dump” has come in ahead of expectations, solidifying the view activity in the world’s second-largest economy is beginning to stabilise.
USD/CNH: Turning point as yuan strengthens despite US core CPI strength?
USD/CNH has broken out of the range it’s been in since July, signaling a potential period of consolidation, or even a reversal, from the prevailing bullish trend.
USD/CNH: Encouraging signs from China’s economy may spark deeper reversal
The Chinese yuan looks set for its largest gain against the US dollar since March, propelled higher a triple-whammy of factors.
China A50: upside risks for earnings grow as stimulus ramps up
Comprising huge financial and property firms, China's A50 may benefit from the rapid rollout of stimulus measures.
USD/CNH, China A50 vulnerable as stimulus measures disappoint
China cuts benchmark interest rates less than expected, adding to concerns about the trajectory for Chinese markets and the economy.
USD/CNY: PBOC ramps up efforts to defend the yuan
The People's Bank of China delivers the strongest USD/CNY fix relative to expectations on record.
AUD/USD, USD/CNH whipsawed as PBOC cuts rates
USD/CNH rallies as the PBOC unexpectedly cuts wholesale interest rates. AUD/USD gains on stimulus hopes.
China ready to intervene in USD/CNH; Tells banks to prepare
After the BOJ and the BOE intervened in the markets, traders are asking “Who’s next?”.
European Open: The PBOC cut lending rate, EUR/CHF set for new lows?
The PBOC lifted China’s equity markets and commodity FX pairs with another round of easing, aimed at supporting their flailing property market.
Could the PBOC allow USD/CNH to head for 7.000
USD/CNH enjoyed its best day since the pandemic yesterday following China’s weak data, as the PBOC seemingly want to allow their currency to slide to help support the economy.
China CPI, PPI, and RRR
The most impactful piece of news from China was the increase in the Reserve Requirement Ratio (RRR) by the PBOC from 7% to 9%
European Open: PBOC to ‘take it easy’ on XI’s command?
The independence of China’s central bank is being questions on reports that China’s top anticorruption agency have been the PBOC’s offices after the past few weeks.
Are China’s problems finally catching up? USD/CNH
It appears that the PBOC couldn’t keep the Yuan down any longer and may have “let it go” to take out stops below the market
People’s Bank of China: a guide to China’s interest rates
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Stocks rebound on PBoC as EZ deflation boosts ECB QE prospects
The European stock markets started the new week and the last day of February on the back foot this morning. The kick-back rally had actually fizzled at the end of last week when oil prices also retreated from their recent highs due in part to profit-taking, while at the weekend, the G20 meeting ended with few surprises. News that German retail sales grew by an above-forecast 0.7 per cent month-over-month in January was offset by data showing a sharp 1.5% drop in import prices. Then at 10:00 GMT this morning, stocks jumped on the back of news the People’s Bank of China (PBoC) has cut banks' reserve requirement ratio by an additional 50 basis points. At the same time, fresh inflation data showed consumer prices in the Eurozone unexpectedly fell by 0.2% year-over-year in February, which raised the probability we may see the introduction of further monetary stimulus from ECB next month.
AUD/USD bounces on PBOC & Chinese trade data, but is it a false dawn?
It’s said that the night is blackest just before the dawn, and investors clearly had a very dim short-term outlook on China’s economy earlier this week. After some aggressive action from the People’s Bank of China (PBOC) and better-than-expected trade data, there is a glimmer of hope on the horizon, but only time will tell if it’s a false dawn or a real sign that things are getting better in the world’s second-largest economy.