Pay attention to the important release for Canada
Canada will publish the level of core retail sales on June 21, at 15:30 MT.
China will increase economic stimulus to fight deceleration
China is going to come up with a number of measures stimulate surge against the backdrop of a trade conflict with America, although there’s limited room for hawkish stimulus in the Chinese economy already impacted by huge debts and also a property market prone to credit-powered spikes, as some policy insiders point out.
The Asian country’s deepening economic deceleration has fanned market hopes for a huge spending binge, in particular if the bruising tariff conflict with America escalates, thus increasing pressure on Chinese jobs and affecting social stability.
The given move, plans for which have frequently been denied by China's key statesmen, would come at a price. Nevertheless, similar moves in the past managed to drive surge rates, although they buried the world's number two economy under an enormous pile of debt.
The Chinese cabinet doesn’t have enough room for a strong stimulus, and risks are high due to the fact it will mainly rely on a flood of cash as well as increased leverage in the national economy, as some insiders familiar with the situation revealed.
In the 2008-09 global financial meltdown, the Chinese government came up with a 4 trillion Yuan spending package to neutralize a downturn, which cost 20 million jobs in a matter of months, rapidly regaining surge, although prompting a credit explosion.
The obsession of China's statesmen with stability resulted in policy easing in 2012 and also 2015 - a year that brought a stock market crash, a dive in the Chinese Yuan as well as steep capital outflows, which further increased debt levels and ramped up home prices.
The Chinese government has taken a raft of pro-surge moves in the past year. The measures included cuts to the levels of cash financial institutions are bound to hold as reserves to back lending, tax cuts as well as efforts to speed up infrastructure spending.
Similar
Preview into the FOMC meeting
Pay attention: the FOMC meeting is today at 21:00 MT time
Market updates on June 19
Your Wednesday's guide.
Latest news
British inflation tacks on for the first time this year
In July, Britain's inflation rate rallied for the first time in 2018, thus leaving many UK households feeling quite squeezed by prices, soaring at nearly the same tempo as their wages…
Evergreen buck heads north
On Friday, the evergreen buck rallied versus its counterparts after data disclosed that the American economy generated more jobs than anticipated In October, thus backing the Fed’s case to proceed with gradual rate lifts…
Gold sinks on soaring greenback
On Monday, gold declined because the evergreen buck managed to gain early traction, thus putting pressure on the most popular precious commodity, which has been sticking with the year’s minimums…
Deposit with your local payment systems
