China manufacturing slows–big deal for global supply chains and People’s Bank stimulus plans
Output from China’s manufacturing sector slowed to its weakest in almost two years in January, according to the Caixin/Markit Purchasing Managers Index. The index dropped to 49.1 in January from 50.9 in December. In the index a reading below 50 indicates that output...
People’s Bank moves to juice China’s economy earlier than I expected
Today, the People’s Bank of China cut its key interest rate for the first time in almost two years to help support China’s economy. The People’s Bank of China lowered the rate at which it provides one-year loans to banks by 10 basis points. Not a huge...
China seen as adding stimulus to its economy in early 2022
Economists predict that China will add significant stimulus to its economy early in 2022. That’s just speculation at this point but it makes very solid sense given: 1. The likely slowdown in China’s economic growth in the fourth quarter of 2021. 2. A...
People’s Bank supports markets (and Evergrande) a little bit
I’d call the policy being followed by the People’s Bank in the China Evergrande crisis “Try to support the markets but see how little we can get away with.” Today China’s central bank supplied liquidity (About $18 billion worth) to the...
Next clue on Evergrande crisis will come from People’s Bank on Wednesday
Even though China Evergrande has missed interest payments to its biggest bank creditors, banks seem to be waiting for official guidance from the government before making any moves to declare the property development company in default. The banks–and investors...
Individuals buying on the dip can’t keep stocks in the green today
Retail investors sure tried. They bought $1.93 billion in stocks on Monday. But after a solidly higher open today, Tuesday, September 21, that saw the Standard & Poor’s 500 up 0.78% at 9:48 a.m., stocks drifted slowly lower for the rest of the day as a...
Will a 5% drop bring out the buy on the dippers? Not, I’d argue, until the People’s Bank makes a move
The Standard & Poor’s 500 fell another 1.70% today and it’s now down 3.94% from the September 2 high. As the index dropped last week (again) and over the weekend, lots of Wall Street money managers said Hey, stocks were over-valued and news from...
It’s still a “Central banks to the rescue” mentality in the financial markets
U.S. stocks were up strongly today on news that the central banks of the United States and China were likely to continue to provide cheap–and cheaper–liquidity to financial markets and economies. In minutes of its January 29 Open Market Committee meeting...
People’s Bank signals that yuan devaluation will be orderly
U.S. stocks rallied strongly today, Thursday, August 8, after the People’s Bank of China set its daily reference rate for its currency at 7.0039 to the dollar. That was stronger than the 7.0156 yuan to the dollar overnight estimate of 21 analysts and trader...
Don’t fight the Fed…and the Bank of Japan, and the People’s Bank, and the European Central Bank
Once upon a time–as late as 2018–the consensus thinking in financial markets was that the Federal Reserve was but the first central bank to raise interest rates. Other central banks, most notably the European Central Bank, (but not the Bank of Japan, which...
China’s banking system springing leaks all over
Take your pick. Either story shows the deep stress in China’s banking system at a time when China’s economy is already slowing. Story 1: After trying to regulate the Peer to Peer lending industry, Beijing has decided to shut down most of the $176 billion...
Markets decide they have nothing to fear except Treasury auctions, Italian budget, and U.S.-China trade war
Actually, considering the list of fears today, it’s kind of remarkable that the U.S. stock market hasn’t fallen farther. (The U.S. bond market is closed for the Columbus Day holiday.) In the EuroZone the confrontation between the Italian government and the...Jim’s Daily Email Alerts:
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