July 1 2024: China’s new financial stability law draft bill has improved provisions for preventing and controlling financial risks, according to draft revisions released on Monday. Revisions to the draft bill underwent a second round of review by China’s top legislature, the National People’s Congress (NPC) Standing Committee, and are open for public feedback until July 27th, according to a post on the NPC website. The bill aims to establish a comprehensive cross-agency mechanism for risk detection and mitigation within the financial system as the country grapples with a prolonged real estate crisis and vulnerabilities in smaller banks. The top legislature…
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July 1 2024: The U.S. dollar slipped in early European trade on Monday, ahead of the week’s key employment report, while the euro rallied after the first round of voting in the French elections. At 05:30 ET (09:30 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.3% lower at 105.255, around a one-week low. Dollar Slips Ahead of Payrolls Release The dollar index has been weakened by the strength of the euro, which carries the largest weight in the basket, and was already impacted by softer-than-expected inflation data released on Friday. The Federal…
July 1 2024: Oil prices increased on Monday, supported by expectations of peak summer consumption and OPEC+ production cuts. However, gains were limited by rising output from other producers and potential economic volatility due to shifting political landscapes. Brent crude futures rose 42 cents, or 0.5%, to $85.42 a barrel by 0845 GMT. U.S. West Texas Intermediate crude futures were up 44 cents, or 0.53%, at $81.97. Both contracts gained about 6% in June, with Brent settling above $85 a barrel over the past two weeks following the extension of deep oil output cuts by the Organization of the Petroleum Exporting…
July 1 2024: Bitcoin’s price increased on Monday, rebounding slightly from recent losses, though overall sentiment towards the cryptocurrency and broader markets remained cautious. The market was jittery due to a potential major liquidation event, with the defunct exchange Mt Gox set to begin distributions of stolen tokens this week. Additionally, traders were anticipating further cues on U.S. interest rates from the Federal Reserve and upcoming economic data. Bitcoin rose 4% over the past 24 hours, reaching $63,259.0 by 00:57 ET (04:57 GMT). The token also benefited from a weakening dollar, which declined by 0.2% on Monday. Mt Gox Bitcoin Distribution…
July 1 2024: European stocks rose on Monday, led by a strong performance in French shares following the first round of the parliamentary election, where the far-right National Rally (RN) party made historic gains, though by a smaller margin than anticipated. France’s CAC 40 index surged by 1.6%, topping the gains among regional markets. Major French banks, including BNP Paribas, Societe Generale, and Credit Agricole, saw their shares increase between 3.8% and 4.8%. This rise contributed to a 0.6% increase in the STOXX 600 index, breaking a streak of four consecutive sessions of losses. In the election, the RN and its…
June 28 2024: The European Central Bank (ECB) has advised Euro zone countries to maintain or even increase bank capital buffers, citing record profits in the sector and looming economic uncertainties. This recommendation comes despite a significant slowdown in lending over the past year due to the ECB’s high interest rates, which have deterred borrowers and lenders and deflated housing bubbles in wealthier nations like Germany. The ECB emphasized the importance of these buffers, which are meant to help banks absorb potential losses, particularly as property prices remain high and debt levels are elevated in some countries. “The Governing Council supports…
June 28 2024: Most Asian currencies remained in a narrow range on Friday as the dollar held near two-month highs ahead of crucial inflation data that could influence the Federal Reserve’s stance on interest rates. Dollar Strength and Yen Weakness The dollar’s strength contributed to further weakening of the Japanese yen, which fell beyond levels previously expected to trigger government intervention. Mixed inflation data from Tokyo provided little support, and repeated government warnings did not affect the currency significantly. Weak Sentiment Toward China Investor sentiment towards China remained weak, with upcoming purchasing managers index data over the weekend contributing to the…
June 28 2024: Top oil exporter Saudi Arabia is expected to reduce crude prices for Asian buyers for the second consecutive month in August, reflecting the ongoing weakness in the Middle East benchmark Dubai, trade sources reported on Friday. The potential price reduction highlights the challenges OPEC producers face as non-OPEC supply continues to increase amid global economic headwinds. Asia, which constitutes about 80% of Saudi Arabia’s oil exports, remains a critical market. Price Adjustments and Market Dynamics The official selling price (OSP) for Saudi Arabia’s flagship Arab Light crude sold to Asia in August is anticipated to decrease by 60…
June 28 2024: Bitcoin prices remained largely unchanged on Friday, holding steady at $61,000 as traders anticipated potential market impacts from the upcoming distribution by the defunct exchange Mt. Gox and awaited a key U.S. inflation reading. Bitcoin rose 1.2% over the past 24 hours to $61,515.2 by 01:39 ET (05:39 GMT). Mt. Gox Liquidation Fears Persist, Bitcoin Heads for June Loss The looming distribution of tokens stolen from the Mt. Gox exchange in 2014 continued to be a significant concern for Bitcoin. Liquidators for the exchange announced that distributions would begin in early July, with stolen Bitcoin and Bitcoin Cash…
June 28 2024: European stock markets traded mostly higher on Friday, ending the week positively as investors digested regional economic data and the political climate ahead of key U.S. inflation numbers. At 03:25 ET (07:25 GMT), Germany’s DAX index was up 0.3% and the UK’s FTSE 100 climbed 0.4%, while France’s CAC 40 fell 0.4%. UK Economy Grew More Than Expected in Q1 European equities were boosted by news that Britain’s economy grew 0.7% in the first quarter of this year compared to the previous quarter, exceeding the initial estimate of 0.6% growth. This data confirms that Britain’s economy exited a…
