China will publish manufacturing and non-manufacturing PMIs on December 31, at 3:00 MT time.
Chinese economy still experiences downward pressure
The Chinese economy still experiences downward pressure and the country’s cabinet is going to counter it by deepening reforms as well as cutting taxes. That’s what state television informed referring to Premier Li Keqiang’s remark on Wednesday.
As a matter of fact, the Chinese economy managed to rally by up to 6.4% in the first quarter, confounding hopes for a further deceleration, with retail sales, investment, and factory output last month all soaring faster than anticipated after a raft of stimulus measures.
The country’s Premier stressed that the Chinese cabinet already knows that the domestic economy is still exposed to downward pressure.
The Chinese statesman called for greater confidence, although added that the country’s cabinet should avoid underestimating the difficulties in the national economy.
The world’s number two economy is on the verge of deepening reforms, cutting red tape and also implementing large-scale tax trims for the purpose of helping companies, as Li pointed out.
In addition to this, China's major financial institution will most probably pause with the aim of evaluating conditions before making any further cuts in lenders' reserve requirements, although its easing policy bias is still intact. That’s what policy insiders revealed to Reuters.
Market experts don’t expect a steep revival in the world's number two economy due to the fact that a great number of private businesses grapple with high funding costs. Meanwhile, external demand might weaken in the nearer future as the world economy loses steam.
On Wednesday, China's major financial institution extended 267.4 billion yuan to some commercial financial institutions via its targeted medium-term lending facility because it seeks to provide struggling smaller businesses with a steady stream of financing.
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 European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.