Our China bogey, the Shanghai - Shenzhen CSI 300 index closed Monday up 1.91% at 3,961.34:
Today's upmoves (CSI 300 up 1.5% etc.) almost feel like a collective sigh of relief from speculators that the MoF briefing didn't go horribly wrong. As the Rock man told Oblio in the Land of Point...—"Commodities Steady as China Pledges More Support for Growth", October 13/14
This followed Friday's 2.76% decline about which we thought - as intro to Friday's "Capital Markets: 'Tomorrow's China Briefing Did Not Prevent the Continued Slide in Chinese Stocks Today'"
Nope. And after the head of China's National Development and Reform Commission (NDRC) declined trader's pleas to inject stimulus directly into their P&L statements a lot of big money decided it is not worth the potential upside to be caught long over the weekend should the Finance Minister also fail to hook-up the sweet, sweet stimmy IVs.
So here we are again. From Marc Chandler at Bannockburn Global Forex:
Overview: The lack of details from China's fiscal briefing, the soft CPI (and deeper PPI deflation), and a smaller than expected trade surplus did not prevent Chinese equities from advancing (CSI 300 +1.9%). Industrial commodities, such as oil, copper, iron ore, are mixed. Among the G10 currencies, the Australian dollar often acts as the China proxy is off more than 0.25%. The US dollar is mostly firmer, through mostly consolidating. The Canadian dollar is a notable exception. It remains under pressure and has fallen to new two-month lows. Emerging market currencies are mixed, with Asia Pacific currencies, including the Chinese yuan are softer.
Japanese markets were closed for Health Day, but outside of Hong Kong and New Zealand, most of the equity markets in the region advanced. The MSCI Asia Pacific Index fell 1.1% last week. It was the first back-to-back weekly decline in two months. Europe's Stoxx 600 is flattish today after rising 0.65% last week. US index futures are firm. European benchmark 10-year yields are mixed. The 10-year UK Gilt yield is at a new three-month high, poking above 4.22%. German and French yields are steady, while the peripheral yields are mostly softer. Gold is firm near $2660 in the European morning, having been near $2667 earlier in the day. It has not closed above $2660 since October 1. It looks poised to challenge the record-high set late September near $2686. November WTI is off more than 2% near $73.75. It remains in Thursday's range (~$73.25-$76.25) amid conflicting signals (disappointment in some quarters over the lack of details in China's briefing and elevated Middle East tensions with US sending an advanced missile defense system and associated troops, which is understood as a sign of preparation for an Iranian counter-strike).
Asia Pacific
China is dominating the news today....
....MUCH MORE
