China Worries the Markets

China Worries the Markets

Good Monday, traders! The greenback has been regaining its strength, and so do we! Let's look at the main news that affects the markets today.

 Party's Congress weakens the markets

The Chinese Communist Party's Congress ended on Sunday. The concern that China will stick to its ideology-driven policies sacrificing China's economic growth pulled HK50 significantly lower. The controversial party's decisions include the zero-tolerance approach towards Covid-19 and the "common prosperity" solutions that led to the collapse of the property market and the weakness of big technology companies.

Last week, the release of China's GDP was postponed due to the Congress, adding speculation that the authorities are trying to hide the economic slowdown. However, the figures published today showed an improvement in economic conditions with +3.9% versus the +3.3% expected. At the same time, retail sales came out significantly below the consensus with +2.5% versus the 3.1% expected. The HK50 index fell by 7.9% since the start of today's trading session and almost reached the 15 000 low. The next support in the focus of sellers will be on the        14 000 level.


At the same time, Alibaba stock lost over 11% in the pre-market. 

Other news that is interesting to follow:

  • The Japanese authorities made interventions of at least $30 billion to prop up its currency. Their actions pulled USDJPY towards the 146 level on Friday. Despite that, the pair has been moving higher today and has already retested 149.10.
  • The earnings season continues! This week we will see the reports by Microsoft, Alphabet, GE, Visa, Meta, Mastercard, Amazon, Intel, and many other big companies! As usual, don't forget to check the forecasts for EPS and revenue before a release.
  • The fears of economic slowdown in China drive the oil prices down. XBRUSD has fallen below $90, and XTIUSD plunged to $81.
  • The EUR is coming through a volatile session with lower-than-expected German Flash Manufacturing PMI (45.7 vs. 46.9) and Eurozone's Flash Manufacturing PMI (46.6 vs. 47.9). At the same time, French Flash Manufacturing PMI outperformed the forecasts with 47.4 vs. 47 points expected. Meanwhile, the ECB is preparing another big rate hike this week.
  • The ex UK Prime Minister Boris Johnson refused to participate in election of a new Prime Minister, leaving Rishi Sunak as the frontrunner. Rishi Sunak served as a chancellor in Boris Johnson's government. According to experts, markets trust Sunak's fiscal strategies.  

For more market updates, check the FBS Analytics Telegram channel!


US Evades Default This Time
US Evades Default This Time

Greetings to a brand new week full of events, economic releases and US debt frictions. We are here to tell you everything you need to know!

Tensions Over Debt Ceiling Rise
Tensions Over Debt Ceiling Rise

The Chinese economy is slowing down, while a risk that politicians will not be able to agree regarding the US national debt increases. Read the full statement to learn more!

Latest news

Bank of Canada Surprises Markets
Bank of Canada Surprises Markets

The CAD is dominating the markets after the key rate increase! Read the full report to learn more about trading opportunities with the Canadian Dollar!

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera