- JP Morgan says the US won't get to a 2% inflation rate unless there is a recession
- Federal Reserve Bank of Richmond President Thomas Barkin is speaking on Thursday
- China is encouraging banks and local business vendors to accept foreign payment cards
- European Central Bank speakers today include Wunsch and Lane.
- Mainland Chinese stock markets will be closed at the end of today, reopen February 18
- Bank of England Monetary Policy Committee member's Dhingra and Mann speaking today
- AUD traders heads up - Reserve Bank of Australia Governor Bullock to speak in Parliament
- Data from China today confirmed higher interest rates in January. Here's how.
- Trillions of yen pile up at the BOJ: "Another sign that sub-zero rate policy close to end"
- Bank of Japan Uchida says does not expect very easy policy to change in a big way
- China January CPI +0.3% m/m (expected +0.4%), with y/y remaining in deflation at -0.8%
- UK labour market tightness lessening as wage growth eases to lowest rate in three years
- PBOC sets USD/ CNY central rate at 7.1063 (vs. estimate at 7.1911)
- BOJ official says even if negative rates abandoned, accommodative conditions would remain
- UK house prices (RICS survey) to highest level since October 2022
- US Energy Information Administration says US oil production will slow dramatically
- China January inflation data due today - the domestic economy is grappling with deflation
- Why JPM traders are bullish on US equities: megacap tech earnings and strong economy
- ECB unlikely to cut rates as DAX hits all-time highs, contrary to Market Expectations
- ANZ anticipates limited near-term recovery for USD/JPY, expected to remain rangebound
- Forexlive Americas FX news wrap 7 Feb: S&P nearly reaches 5000 milestone. Lots of Fedspeak
- S&P index nearly reaches the 5000 milestone. S&P and Dow close at record levels.
- ICYMI - Trump plans punitive tariffs on EU in second term: Bloomberg
- Trade ideas thread - Thursday, 8 February, insightful charts, technical analysis, ideas
USD/JPY jumped today after a speech from Bank of Japan Deputy Governor Shinichi Uchida. The details are in the link above, but in brief he once again reiterated the importance of holding monetary policy at easy settings, and added that the BOJ is unlikely to raise interest rates aggressively, even after ending its negative interest rate policy.
He head plenty more to say (see link above).
On the data agenda the focus was on China’s inflation (deflation) data for January. The CPI fell y/y (at -0.8% for a deflation result again) at the fastest pace since the global financial crisis. Not all the data showed deflation, tough. Core inflation (CPI excluding food and energy prices) gained, up 0.4% y/y from +0.6% in December. The m/m headline rose also.
For 2023 as a whole the CPI rose 0.2% y/y, well short of the PBoC 3% target. This is not too unusual, though, its fallen short of target now for 12 consecutive years. I argued in a post above that with Loan Prime Rates (LPRs) sticking at 3.45% for the one-year and 4.20% for the five-year the further deflation today has, in effect, raised real rates in China yet again.
Chinese stocks continued their bounce into the long (Lunar New Year) holiday. Chinese markets are closed on Friday February 9, they will reopen on Monday February 19.
Hong Kong and Singapore markets will have brief closures (see bullets above for details).
The CSI 300 Index tracks the performance of the top 300 stocks listed on the Shanghai Stock Exchange and the Shenzhen Stock Exchange. It's considered a benchmark for the overall performance of the Chinese A-share market.
The index includes the largest and most liquid A-share stocks, covering a wide range of sectors.
It covers sectors such as financials, industrials, consumer discretionary, technology, and healthcare.
Its widely used by fund managers and investors as a benchmark for China's stock market.