Happy Wednesday, traders! We went through the Internet and found the best news for you, take a look!
China’s new bank loans head north in January
In China, new bank loans tacked on to a one-year maximum in the first month of this year, as a Reuters survey disclosed. It became possible due to the fact that the Chinese cabinet kept spurring commercial lenders to extend more credit to cash-strapped businesses in a decelerating economy.
In January, Chinese financial institutions were anticipated to have extended up to 2.8 trillion Yuan in net new loans, which is more than December’s outcome of 1.08 trillion Yuan. It would be the highest outcome since the record result of 2.9 trillion Yuan demonstrated in January 2018.
For the entire 2018, the Asian country’s financial institutions extended a record 16.17 trillion Yuan in new loans after the major financial institution on four occasions in 2018 reduced the amount of cash that they needed to keep as reserves.
However, it didn’t stop the world's number two economy from soaring at the weakest tempo since 1990. Market experts told that a faster tempo of credit expansion is required to keep the American economy from decelerating too fast.
In January, the country’s major bank cut the reserve requirement ratio for financial institutions by 100 basis points, thus stimulating them to lend more. Market experts expect a further 150 bps dive by year-end.
At the end of 2018, China’s major bank has also deployed fresh tools, including the Targeted Medium-Term Lending Facility. The measure is expected to provide longer-term liquidity for financial institutions to back loan surge.
However, China isn’t anticipated to flood the national financial system with credit at once. Instead, the major bank will stick to its line on keeping policy neither too loose not too tight.
Previously, some sources revealed that the PBOC urged some financial institutions to moderate their tempo of lending last month.
It’s Wednesday, my fellow traders! The day is filled with news and events you need to know, and here’re some of them.
The USD weakened after Fed Chair Powell hinted at a slowdown of rate hikes, and stocks strengthened. What else is moving the markets today?
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.