The British monthly GDP is announced on Friday at 09:00 MT time.
S&P downgrades China as credit surge is still too fast
China's vigorous attempts to tame risks from its fast buildup in debt aren’t working as rapidly as expected and credit surge is still excessively fast, as S&P Global Ratings told on Friday, just a day after it dared to have the Asian country's sovereign credit rating downgraded.
While S&P informed months ago that a downgrade might be on the cards, the organization told it made up its mind to make the call having concluded that China's "de-risking" drive, which broke out early this year impacted credit surge less than initially expected.
Notwithstanding the Chinese authorities have demonstrated greater resolve to implement the deleveraging policy, S%P keeps observing overall credit in the corporate sector to stick to 9%, as an S&P senior director of sovereign ratings, Kim Eng Tan revealed in a conference call to explain the one-notch downgrade to from AA- to A+.
Tan added that broader lending by all banks, excluding equity fund-raising, has started soaring having surged by a relatively firm 12-13% for the last few years.
The main market tendency today is that the US dollar is rising against its major peers and riskier assets such as stocks and oil are plummeting.
The US unemployment claims are out on Thursday at 15:30 MT time.
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.