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.
China’s new loans go down in July
As a Reuters survey disclosed, in July, China's new loans sank. However, they’re still firm enough and broad money supply surge might have picked up because China’s major financial institution considered ramping up policy support for the national economy in the face of an escalating trade conflict with the United States.
The trade clash with America, soaring corporate borrowing costs as well as a steep sink in the value of the Chinese currency against the evergreen buck have increased worries that the world's number two economy could experience a steeper deceleration.
Chinese financial institutions were estimated to have lent up to 1.2 trillion Yuan in new Yuan loans in July, dipping from June’s five-month maximum of 1.84 trillion, as follows from a Reuters poll of 36 market experts.
However, the expected July outcome seems to be firm enough in contrast with 825.5 billion Yuan in 2017. As a rule, in July, Chinese financial institutions make few loans having traditionally ramped up lending in June.
In July, broad M2 money supply was caught soaring by 8.2% from 2017, speeding up from June's 8% ascend that turned out to be the lowest value on record, as follows from the survey.
In July, annual surge of outstanding loans speeded up to 12.8% versus June’s outcome of 12.7%.
The PBOC has been pumping out more funds for the purpose of stimulating lending but it struggles to channel credit to small businesses, which are crucial for economic surge as well as job creation, as some financial analysts pointed out.
State financial institutions of China are still reluctant to lend to small businesses, which are traditionally considered to be riskier than state-controlled ones.
The previous week a major bank adviser told that China requires limiting the credit influence of its financial deleveraging drive, expressing worries that tightening might have gone too far.
The US showed strong retail sales for August despite the spread of the Delta virus strain. As a result, the US dollar rocketed and gold dropped by 2286 points in half an hour after the release.
The Kansas City Federal Reserve announced Friday the annual Jackson Hole symposium will be held virtually, a reversal from prior plans that saw a modified, in-person program…
The US dollar is heading to close the seventh day in the red as it remains under selling pressure. The US data at 15:30 GMT+3 (jobless claims and Philly Fed Manufacturing Index) may support the greenback if it's strong.
Canada will publish the Retail Sales and Core Retail Sales on October 22, at 15:30 MT time (GMT+3).
The United States will release the weekly Unemployment Claims on October 21, at 15:30 MT time (GMT+3).