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China rate cuts looming, US booming – Oct 21

Posted on
October 20, 2024
by
moneysmart-girl

Today’s Market News

Key developments on Monday:
  • China loan prime rate decision
  • Malaysia GDP (Q3)
  • Reserve Bank of Australia deputy governor Andrew Hauser speaks

 

The PBOC also on Friday unveiled new measures to inject more than $100 billion into the country’s stock market, which helped lift Shanghai’s blue chip equity index by 3.6%, while the MSCI Asia ex-Japan index rose 1.6% for its best day since Sept. 26.

China’s economic ‘data dump’ on Friday wasn’t as bad as many feared it could have been, and annual GDP growth in the third quarter was slightly above consensus at 4.6%.

Stocks have responded positively, but bond yields are sliding again. They initially spiked higher on hopes the support measures, which include substantial bond issuance, will reflate the economy but 10-year yield is once again within sight of 2.00%.

U.S.-Sino trade wars have been pushed to the forefront of investors’ minds again after Republican presidential candidate Donald Trump said he would impose additional tariffs “at 150% to 200%” on China if China were to “go into Taiwan,” the Wall Street Journal reported on Friday.

The US juggernaut, meanwhile, keeps rolling on – economic data are beating expectations, GDP growth is tracking well over 3%, incoming earnings are strong, and Wall Street is hitting new highs.

 

Financial conditions are easing around the world, as central banks cut rates and stocks march higher. On that score, investors in Asia will keep close tabs on the dollar, which has recovered recently and is at a three-month high.

Index Last Change % Change
trading higher

 43,077.70 +337.28 0.79%Positive
trading higher

 18,367.08 +51.49 0.28%Positive
trading higher

 5,842.47 +27.21 0.47%Positive
Index Last Change % Change
trading higher

 38,981.75 +70.56 0.18%Positive
trading higher

 20,804.11 +725.01 3.61%Positive
trading higher

 81,224.75 +218.14 0.27%Positive

Source: LSEG, opens new tab – data delayed by at least 15 minutes

 

 

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