A lighter US financial calendar is an opportunity to concentrate on China woes

A lighter US financial calendar is an opportunity to concentrate on China woes
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Xi Jinping

The Fed is within the blackout interval till after the FOMC determination and the US economic calendar is gentle immediately, that includes solely wholesale inventories and employment traits.

That can give the market an opportunity to catch its breath after a busy week to start out the month. It is also an opportunity to look overseas and digest the woes in China. Iron ore costs hit the bottom since 2022 immediately in a strong proxy for Chinese language demand.

We additionally obtained Chinese language CPI and PPI and each have been under expectations at +0.6% y/y and -1.8% y/y, respectively. These uncooked numbers let you know all you want to know in regards to the ammunition that the PBOC has however is reluctant to make use of due to forex worries. The excellent news is that the forex has firmed so that they have some room to ease.

Will they take it?

On Friday we get Chinese language industrial manufacturing and retail gross sales knowledge. One other spherical of unhealthy numbers ought to ramp up the stress.



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