What drives the market on July 1?
The market sentiment is mixed. Let’s look at most interesting movements on the market today.
China regulates fund outsourcing business to withstand shadow banking
China's securities regulator has recently introduced fresh restrictions for financial institutions considering outsourcing fund management to external fund managers, as the government tightens shadow banking. That’s what the official Securities Times informed on Monday
Financial institutions, including insurers and banks have been providing fund management mandates to funds exceeding 1 trillion Yuan to mutual fund houses because they outsource their wealth management operations.
Regulators are concerned that such funds are utilized as a shadow banking channel by many lenders for the purpose of making risky bets in corporate equities or bonds, without efficient management by the external fund house.
In order to prevent this, on Friday, the China Securities Regulatory Commission released rules, requiring funds where single institutions control 50% or more to operate exactly as closed-end funds, and barring them from getting subscriptions from individual investors.
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Will the NFP push the USD again?
Non-Farm Payrolls data will be released on Thursday at 15:30 MT time.
Will the European labor dynamic boost the EUR?
The European unemployment rate will be announced on Thursday at 12:00 MT time.
Latest news
The RBA: keeping the AUD alive?
The Reserve Bank of Australia will publish its statement and announce the interest rate on July 7, at 7:30 MT time.
What will affect markets on July 3?
The overall market sentiment was mixed after the USA recorded the largest increase in virus cases since May 9. The data even offset the better-than-expected NFP.
How to trade on July 2?
The risk-on tone is back on the market again. Let’s look at main trading opportunities.
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