China’s August economic activity data was published today with beats across the board. The real economy has been showing signs of ‘green shoots’, eve
China’s
August economic activity data was published today with beats across
the board. The real economy has been showing signs of ‘green
shoots’, even as the property sector sinks deeper into distress. We
had more or this today with the news that Chinese state-linked
developer Sino-Ocean had suspended payment on all its offshore debts.
Up until recently the firm had been viewed as among the few
developers capable of weathering the property sector’s debt crisis.
Earlier this week its share price dropped to a then record low. That
decline extended today.
AUD/USD
shrugged off the property secotr woes in China and responded instead
to the better economic data. AUD/USD is near its session high above
0.6460 as I post. NZD/USD is higher also.
USD/CAD
is little net changed on the session. USD/JPY, EUR/USD, GBP/USD are
also little changed. Gold has staged a rally and is trading just a
few dollars short of US$1920.
There
was little other data or news of note. The US Auto Workers Union say
they will begin a strike at 3 plants in the US, at a GM, Ford, and
Stellantis (Fiat Chrysler / PSA Group) factory. It’ll begin at
begin at midnight unless there is some last minute deal reached.
From
the People’s Bank of China today we had the Medium-term Lending
Facility (MLF) setting, at an unchanged rate of 2.5%. 400bn yuan of
MLF matured, 519bn was injected for a net +119bn yuan. The PBOC also
added funds via 7-day and 14-day reverse repos in open market
operations. It was the first 14-day RR in many months, at a rate of
1.95% from 2.15% previously.
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