CHINA: Bond Wrap.
Oct-25 05:20
- Medium Term Lending Rate Unchanged Whilst Withdrawing Liquidity (source: MNI).
- PBOC injects liquidity via OMO (source: MNI)
- Xi’s Stimulus Package Met With Wall of Skepticism in Washington (source: BBG)
- Equity markets were strong today with Shanghai Comp +0.82%, CSI 300 +1.05% and both finishing over +1% stronger for the week.
2yr 1.542% 5yr 1.849% 10yr 2.165% (-0.5bp) 30yr 2.356%
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
LOOK AHEAD: Eurozone Timeline of Key Events (Times BST)
Sep-25 05:18
| Date | Time | Country | Event |
| 25-Sep | 745 | FR | Consumer Sentiment |
| 25-Sep | 800 | ES | PPI |
| 25-Sep | 1400 | EU | MNI Connect Video on ‘EU & Global Trade Challenges’ |
| 26-Sep | 700 | DE | GFK Consumer Climate |
| 26-Sep | 900 | EU | M3 |
| 26-Sep | 900 | IT | ISTAT Business / Consumer Confidence |
| 26-Sep | 1000 | EU | ECB's Elderson remarks at governance & risk meeting |
| 26-Sep | 1430 | EU | ECB Lagarde address at ESRB Conference |
| 26-Sep | 1515 | EU | ECB's De Guindos in macroprudential policy panel |
| 26-Sep | 1700 | EU | ECB's Schnabel at Wirtschaftsrat der CDU e.V |
| 27-Sep | 745 | FR | HICP (p) / PPI / Consumer Spending |
| 27-Sep | 800 | ES | HICP (p) / GDP (f) |
| 27-Sep | 855 | DE | Unemployment |
| 27-Sep | 900 | IT | PPI |
| 27-Sep | 900 | EU | ECB Consumer Expectations Survey |
| 27-Sep | 915 | EU | ECB's Lane remarks at Fiscal Policy conference |
| 27-Sep | 1000 | EU | EZ Economic Sentiment Indicator |
| 27-Sep | 1000 | EU | Consumer Confidence, Industrial Sentiment |
| 27-Sep | 1040 | EU | ECB's Cipollone at Economics of Payments XIII Conference |
SCHATZ TECHS: (Z4) Trades Through Key Resistance
Sep-25 05:14
- RES 4: 107.450 1.00 proj of the Sep 3 - 11 - 18 price swing
- RES 3: 107.300 0.764 proj of the Sep 3 - 11 - 18 price swing
- RES 2: 107.207 0.618 proj of the Sep 3 - 11 - 18 price swing
- RES 1: 107.195 High Sep 24
- PRICE: 107.150 @ 05:55 BST Sep 25
- SUP 1: 106.894 20-day EMA
- SUP 2: 106.815 Low Sep 18
- SUP 3: 106.675 Low Sep 4
- SUP 4: 105.520 Low Sep 3 and a key support
A bull cycle in Schatz futures remains intact and the latest pullback has been a correction. Yesterday’s gains resulted in a print above 107.155, the Sep 11 high and a key resistance. This highlights a resumption of the uptrend and a continuation higher would open 107.207, a Fibonacci projection. The recent pullback resulted in a print below 106.894, the 20-day EMA. A clear breach of this EMA would signal scope for a corrective retracement.
ASIA STOCKS: China & Hong Kong Equities Surge Again On Stimulus Hopes
Sep-25 05:13
- Asian markets rallied for a second consecutive day, driven by optimism over China’s wide-ranging stimulus package aimed at revitalizing its sluggish economy. The onshore CSI 300 Index rose by 3.2% at one point, nearly erasing its year-to-date losses, while the offshore yuan strengthened past 7 against the dollar for the first time since May 2023. Investors are betting that the People’s Bank of China’s latest measures, which include liquidity support and interest rate cuts, will stabilize China’s stock market and boost regional equities. The stimulus has also bolstered emerging Asian currencies, with the Malaysian ringgit and Thai baht leading gains.
- Despite positive sentiment, investors remain somewhat cautious warning that the measures may not fully address China’s structural economic challenges.
- Key Hong Kong & China benchmarks are trading 1-3% higher, with HSI +2%, CSI 300 +2.30%. In Japan, the Nikkei is +0.30%, while the broader Topix trade flat with Banks offsetting gains In Materials & Industrials stocks. South Korean equities are lower today as foreign investors continue to offload local stocks, predominately tech stocks although large -cap names Samsung & SK Hynix trade higher on the day, banks have weighed on the wider market.
