What happened? On Monday, February 21, Russian President Vladimir Putin signed decrees recognizing the sovereignty of the Donetsk and Lugansk People's Republics…
China’s new loans are firmer than anticipated in July
In July, Chinese financial institutions managed to extend up to 1.45 trillion Yuan in net fresh Yuan loans. The given outcome beat experts’ estimates because an escalating trade feud with America actually threatens to apply more pressure on the decelerating Chinese economy.
The Asian country’s policymakers have been injecting more cash to stimulate financial institutions to lend to struggling businesses, although there’re indications that lenders are becoming cautious because defaults soar, hampering efforts to channel funds to sectors that require it.
Furthermore, some China watchers are afraid that the government’s shift in stimulating surge might provoke a return to its credit-powered spending practice of the past, thus making worthless its multi-year campaign to cut risks in the financial system and a huge pile of debt.
The firmer- than-anticipated lending data was published by the country’s banking and insurance watchdog, the PBOC pumps out more liquidity into the decelerating Chinese economy.
Market experts surveyed by Reuters had foreseen new Yuan loans of 1.2 trillion yuan, slipping abruptly from June's outcome of 1.84 trillion Yuan.
The country’s banks managed to extend a record 13.53 trillion Yuan in new loans in 2017, and lent up to 9.03 trillion yuan in the first half of 2018, which is a 13% leap from the same period of the previous year.
As a matter of fact, in July, household loans, generally mortgages, headed south to 634.4 billion Yuan compared to June’s result of 707.3 billion Yuan, as the major bank's data informed.
In July, household loans amounted to 43.8% of total new loans in contrast with June’s reading of 38.4%.
As for corporate loans, in July, they inched down to 650.1 billion Yuan versus 981.9 billion Yuan in June.
Additionally, in July, broad M2 money supply ascended by 8.5%, which is the highest reading for five months.
Hong Kong’s HK 50 index rose and the Chinese yuan edged up as traders assess the outcome of the first virtual meeting between US President Joe Biden and Chinese leader Xi Jinping.
A selloff in stocks stopped. S&P 500 has reversed up from the 100-day moving average. It should be the perfect time to buy the index.
The Australian Bureau of Statistics will announce the updated Unemployment Rate and Employment Change data on Thursday, May 19, at 04:30 MT.
The UK Office for National Statistics will publish Consumer Price Index (CPI) data on Wednesday, May 18, at 09:00 MT.
The US Census Bureau will announce Core Retail Sales and Retail Sales on Tuesday, May 17 at 15:30 MT.