Hong Kong’s HK 50 index rose and the Chinese yuan edged up as traders assess the outcome of the first virtual meeting between US President Joe Biden and Chinese leader Xi Jinping.
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.
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.
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.
As Europe moves into recession, next week may provide us with some amazing trading opportunities. Here they are!
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.