China will publish manufacturing and non-manufacturing PMIs on December 31, at 3:00 MT time.
China will keep backing economy as pressure persists
China is going to maintain policy support for the national economy, still facing downward pressure as well as difficulties after better-than-anticipated first quarter surge. That’s what a top decision-making body of the Communist Party informed on Friday.
In fact, the statement from the politburo showed up just two days after China had posted steady 6.4% annual surge in January-March, thus confounding expectations for a further deceleration, as industrial output rallied steeply and consumer demand demonstrated signs of improvement.
Referring to a politburo meeting headed by President Xi Jinping, the official Xinhua newы agency informed that while fully affirming the country’s achievements, the government needs to clearly see that there’re still a lot of difficulties and issues in economic operations.
The external economic environment is generally tightening, while the domestic economy is facing downward pressure.
The agency added that China is going to implement counter-cyclical adjustments in an appropriate and timely manner, while the pro-active fiscal policy is going to become more effective and forceful, so the prudent monetary policy is going to be neither too loose nor too tight.
For this year, the Chinese cabinet has uncovered tax as well as fee cuts accounting for 2 trillion yuan to soothe burdens on businesses, while the country’s major financial institution has cut banks' reserve requirement ratios up to five times since early 2018 to increase lending.
On Friday, the Chinese government repeated that they’ll effectively underpin the private economy as well as the development of medium-sized and small businesses.
The Chinese government will strike a balance between stabilizing economic surge, controlling risks, promoting reforms and also improving citizens’ livelihoods.
China's economic surge is anticipated to speed down to a near 30-year minimum of 6.2% in 2019.
The market is resilient ahead of the speeches of Fed’s Powell and ECB President Lagarde, but there are still interesting movements.
The market sentiment is mixed, but there are still interesting movements on the market.
The Canadian central bank will make a monetary policy report and announce interest rates on Wednesday, January 20, at 17:00 MT time. Also, the BOC press conference will be held later.
USD’s rally takes a pause, while riskier assets are modestly rising.
We are now past the middle of January, and this means that the largest US companies will report their earnings for the fourth quarter and many of them will provide the results of the entire 2020.