Hong Kong stock index extended a decline sparked by China’s tech crackdown. Tesla posted better-than-expected results. Jump in!
China is cautious on rates this time notwithstanding Fed lift
On Thursday, China's major financial institution left interest rates for open market operations intact, shrugging off an overnight soar in the Fed’s key policy rate.
The People's Bank of China didn’t provide comments on its rationale for keeping rates intact, after it followed a Fed lift within hours in March.
However, the Chinese Yuan is currently on steadier footing, while domestic liquidity conditions happen to be relatively tight.
Financial markets had been divided as for whether the PBOC would lift short-term rates once again in lockstep with the major US bank. By the way, China's short-term money rates along with bond yields have already been ascending.
Market participants pointed out that in June liquidity turns to be traditionally tight, and they still remember a cash crunch in 2013, which sent money rates up and shocked global markets.
The Chinese Yuan has ascended 2.3% so far this year, having dropped 6.5% last year.
The overall market sentiment is risk-on. The S&P 500 index (US 500) is getting close to the all-time high. Oil is recovering quickly from its recent losses.
PMI reports from the EU, the UK, and the USA will be released during the day!
The Fed held a much-awaited meeting yesterday. The bank hasn’t made any policy changes. As a result, the USD weakened and EUR/USD rocketed. Jump in to know all the latest news!
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Today the Fed will make a policy statement at 21:00 GMT+3. This event will affect all the currency pairs with the USD and thus almost the all Forex market!