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Oct 16, 2023: China’s central bank ramped up liquidity support to the banking system as it rolled over medium-term policy loans on Monday, but kept the interest rate unchanged amid concerns about the risk of more sharp yuan declines. The People’s Bank of China (PBOC) is walking a tightrope between keeping liquidity ample to aid a struggling economy and stabilising the yuan amid expectations of “higher for longer” U.S. rates. The PBOC said in a statement it conducted medium-term lending facility (MLF) operations worth 789 billion yuan ($107.96 billion) to keep liquidity in the banking system adequate. With 500 billion…

Oct 16, 2023: China’s central bank ramped up liquidity support to the banking system as it rolled over medium-term policy loans on Monday, but kept the interest rate unchanged amid concerns about the risk of more sharp yuan declines. The People’s Bank of China (PBOC) is walking a tightrope between keeping liquidity ample to aid a struggling economy and stabilising the yuan amid expectations of “higher for longer” U.S. rates. The PBOC said in a statement it conducted medium-term lending facility (MLF) operations worth 789 billion yuan ($107.96 billion) to keep liquidity in the banking system adequate. With 500 billion…

Oct 16, 2023: The European Union will seek this week to ward off the return of Trump-era metals tariffs and to lessen the negative impact on the U.S. Inflation Reduction Act (IRA) and its subsidies for electric vehicles. U.S. President Joe Biden will host European Commission chief Ursula von der Leyen and European Council head Charles Michel on Friday for a one-day summit designed to show transatlantic unity toward Ukraine and economic topics. Chief among the latter will be a proposed joint statement on steps to tackle global overcapacity of steel and aluminium and to promote sustainable production. Washington has…

Oct 16, 2023: Crude oil held above $90 a barrel, equities slid and the safe-haven dollar was firm on Monday amid heightened anxiety over escalating violence in Gaza and the prospect the conflict could spread beyond Israel and Hamas into the wider region. Israel’s shekel sank to a more than eight-year low after the country’s prime minister, Benjamin Netanyahu, vowed to “demolish Hamas” in retaliation for the rampage on Oct. 7 that killed 1,300 people in the worst attack on civilians in Israel’s history. U.S. Secretary of State Antony Blinken is visiting the region, seeking to prevent further escalation. Netanyahu…

Oct 16, 2023: The International Monetary Fund and World Bank wrapped up annual meetings in Morocco on Sunday with some progress towards increasing their lending resources but confronting a new economic shock from the Israel-Gaza conflict. Discussions in the tourist hub of Marrakech, not far from the epicenter of a devastating September earthquake, focused on a flagging global economy weighed down by debt, inflation and conflict, a growing wealth gap between rich and poor countries and floundering efforts to tackle climate change. Here are the main takeaways: SOME FUNDING PROGRESS IMF member countries pledged to increase quota contributions by year-end…

Oct 13, 2023: European stock markets traded in a subdued fashion Friday as investors digested China’s fragile economic performance and more inflation data amid heightened geopolitical tensions. At 03:55 ET (07:55 GMT), the DAX index in Germany traded 0.2% lower and the CAC 40 in France dropped 0.1%, while the FTSE 100 in the U.K. rose 0.1%. China’s trade data remains weakEconomic data released earlier Friday showed another drop in China’s exports and imports in September, although they shrank at a slower pace, pointing to a gradual stabilisation in the world’s second-biggest economy. Exports fell by 6.2% in U.S. dollar…

Oct 13, 2023: The U.S. dollar edged lower in early European trade Friday, but remained near the previous session’s elevated levels after the release of sticky U.S. inflation data awakened the prospects of another Federal Reserve interest rate hike this year. At 03:10 ET (07:10 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% lower at 106.222, just off Thursday’s high of 106.60, when the index registered its biggest one-day percentage jump since March. U.S. CPI lifts chances of December Fed hikeHeadline U.S. consumer prices grew at a faster-than-anticipated rate in September,…

Oct 13, 2023: Inflation in Germany is on a downward trajectory, Bundesbank President Joachim Nagel said on Friday on the sidelines of an International Monetary Fund meeting in Marrakesh. “It seems we have passed the peak of inflation,” Nagel told reporters, speaking alongside German Finance Minister Christian Lindner. “The 10 interest rate hikes – and this is crucial from the central bank’s point of view – are having their effect,” he said. Nagel said it was now important to look at the impact of monetary policy on the economy, adding: “But overall, I am satisfied with how monetary policy is…

Oct 12, 2023: U.S. stock futures inch higher, as markets prepared for all-important September consumer price data that could influence how the Federal Reserve approaches future interest rate decisions. Minutes from the Fed’s meeting last month showed caution among policymakers, although some officials are now wondering if a weeks-long surge in U.S. Treasury yields has tightened financial conditions for them. Elsewhere, Steve Scalise is nominated by his Republican colleagues as the new House Speaker, as the lower chamber of Congress remains at a standstill despite facing a host of major legislative questions. CPI ahead The latest consumer price index (CPI)…

Oct 12, 2023: The U.S. dollar slipped lower in early European trade Thursday, hovering near a two-week low ahead of the release of key U.S. inflation data. At 03:15 ET (07:15 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.2% lower at 105.377, just above the day’s low, the weakest level in two weeks. Higher bond yields to replace rate hike?The minutes from the Fed’s last meeting, released on Wednesday, indicated that most of the central bank’s policymakers agreed that one more rate hike would be “appropriate” as inflation continues to trend…