The market takes breath after the long rally. What opportunities do traders have today?
Chinese banks will demonstrate slowing loan surge
Chinese banks are braced for seeing a slowdown in lending surge during the second half of 2017, having used most of their annual credit quota, thus increasing the specter of corporate defaults because financing costs keep rising in the world's number two economy.
Beijing's crackdown on risky lending has already increased financing costs and affected profit margins. Experts estimate that banks have already utilized 80% of their yearly credit quota over January-June, against the regular 60%, amid a regulatory attempt to bring shadow financing activities to the key loan book.
China’s key lenders, including China Construction Bank, Agricultural Bank of China and Industrial and Commercial Bank of China are going to report their first-half outcomes over the next two weeks.
China's policymakers have told that the government will keep lowering overall leverage and that slower surge in broad M2 money supply, includes demand deposits as well as monies in easily accessible accounts, could be a normal thing.
The United States will publish a weekly update on unemployment claims on July 9, at 15:30 MT time.
The market sentiment deteriorated amid increasing virus cases in the USA and Australia. Investors prefer safe-haven assets like gold, the US dollar and the Japanese yen.
Riskier currencies and stocks are in favor of investors. Surprisingly, gold rallies too. Let’s have a closer look.
Congratulations! Gold has just opened a new era... or, rather, reopened...
Canada will publish the employment change and the unemployment rate on July 10, at 15:30 MT time.