Comments by SocGen’s chief China economists, Yao Wei Yao says that the move by the PBOC is part of its efforts to mitigate the “pain” of deleveraging. Adding that “as shadow credit growth is falling quickly now, banks need all the help they can get to sustain formal bank lending”.
Scotiabank’s head of European fixed income strategy, Alan Clarke, spoke to Bloomberg earlier Clarke says that a BOE rate hike in May is not a shoe-in, and that it is much closer to call than what market pricing suggests (OIS market has a May rate hike priced at 84.1% probability).
UK finance minister Philip Hammond speaks in parliament Although the highlight of the UK labour market report earlier was the poorer than expected wage growth, the employment rate rose to 75.4% – a record high. This comes as the unemployment rate falls to 4.2%, the lowest since 1975.
Forex news for the European trading session – 17 April 2018 Economic data: Headlines: Others: – JPY leads, NZD lags behind on the day – European equities mostly higher, DAX leads gains +0.84%
Headlines via Bloomberg and Reuters PBOC says that the cut will be effective as of 25 April. It has been the case in the past that the PBOC is using targeted RRR cuts in order to boost lending. And in this case they say that the funds released by the RRR cuts are for banks…
The USD is a mixed bag The CAD is the strongest while the NZD is the weakest as the North American session gets underway. Stocks are up strongly in early trading with Netflix and Goldman leading the way after their respective earnings reports beat expectations. Bond yields are creeping higher. The USD is mixed.
100 day MA for S&P at 2700.48 today The US major indices are trading higher today. We can thank a surge in subscriptions on Netflix for giving the stocks a boost. Netflix is up over 7% and around 70% in 2018. Technology shares are following the leader.
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Remains confined to the range The USDJPY moved lower over the last few trading days, after peaking on Friday. The move to the high last week moved above a small ceiling at the 107.45-49 area, but came back down. Yesterday there was a run up after the weekend developments but also came back down.
Williams in Madrid – Gradual hikes reduce the risk the economy could overheat – Outlook for US economy is very positive – Core inflation to hit 2% some time in 2018 We’ve heard this before from Williams.