- Brent oil - More on biggest US oil ETF to focus majority of its holding to spot month
- Federal Reserve Vice Chair for Supervision Michael Barr speaks on Monday
- In H1 of 2023 Chinese auto exports were up 75.7% y/y
- US Commerce Sec says US stable economic relationship with China is profoundly important
- Australian data: July retail sales +0.5% m/m (expected +0.3%)
- PBOC sets USD/ CNY reference rate for today at 7.1856 (vs. estimate at 7.2854)
- Brent oil price likely anchored around $80 / bbl says Morgan Stanley
- Xi Jinping deep-rooted philosophical objections to Western-style consumption-driven growth
- Preview of Australian July inflation data due mid-week. A key release for the RBA and AUD.
- China Evergrande shares will resume trading today, Monday, 28 August 2023
- China to restrict share reductions by major shareholders
- Case builds for China's banks to cut deposit rates
- The Chinese yuan has gapped higher after announcement boost outweighs bad data
- US dollar outlook - MUFG anticipate the USD will continue to see near-term gains
- Goldman Sachs says again they expect July was the final FOMC interest rate rise
- Australian Treasurer on the 2 biggest risks to Australian economy: China & RBA rate hikes
- Brent oil news - Biggest US Oil ETF to shift holdings to front of curve starting September
- Weekend data: China's industrial profits fell 6.7% m/m in July, y/y down 7 months in a row
- Former Fed Kansas George says "you don’t want to declare victory too soon" on inflation
- Trade ideas thread - Monday, 28 August 2023
- Weekend - BoE's Broadbent says interest rates may have to stay high 'for some time yet'
- Weekend - Fed's Mester sees another interest rate hike, says cuts may have to wait
- Weekend - China halves stamp tax for securities trading
- BOJ Gov. Ueda spoke on the weekend: "underlying inflation is still a bit below our target"
- Monday morning open levels - indicative forex prices - 28 August 2023
- Weekly Market Outlook (28-01 September)
- Newsquawk Week Ahead: US ISM, PCE and NFP, EZ CPI, ECB Minutes and Chinese PMIs
- Forexlive Americas FX news wrap 25 Aug: Powell/Fed prepared to raise rates but "carefully"
Weekend news from China drove Chinese stocks sharply higher (before the fade back):
- Shanghai Composite Index opens up over 5%
- Shenzhen Component Index up 5.7%
- Chinext Price Index up nearly 7% (tech heavy index)
- CSI300 up more than 5%
- Securities brokerages hit limit-up across the board
- Property developers strong rally
The news was of a Chinese authorities release aimed at boosting the stock market. Most notable were easier margin restrictions and moves to restrict the selling of stocks by institutions. Of course, moves to restrict the selling of stocks hardly seems confidence inspiring but the headline impact is clear, fewer sellers and prices jumped. Buy now, worry later.
CNH rose early, pre-empting the stock moves (FX trades much earlier than the relaxed folks on stock markets do) and has since retraced.
AUD and NZD seemed to catch some positive sentiment from this on the session, both rose a little, but nothing like China shares did. EUR, GBP, CAD barely moved.
USD/JPY ticked a little higher after comments from Bank of Japan Governor Ueda on Saturday in Jackson Hole reiterate his commitment to loose policy.
Asian equity markets:
Japan’s Nikkei 225 +1.7%
China’s Shanghai Composite +2.4%
Hong Kong’s Hang Seng +2%
South Korea’s KOSPI +0.8%
Australia’s S&P/ASX 200 +0.6%
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As a side note China Evergrande shares resumed trade today after a 17-month suspension. Shares fell nearly 90% at the open.