CHINA: Country Wrap: Tariffs off CHIPS
Jul-04 05:36
- Three key chip companies said on Thursday that the US had lifted export restrictions on chip design software for China and that they have resumed or are in the process of resuming sales and support to Chinese customers. Siemens AG said in a statement that it has been informed by the United States Department of Commerce's Bureau of Industry and Security that export control restrictions on electronic design automation, or EDA, software and technology to Chinese customers have been lifted. The restrictions, outlined in a letter sent by the US government to the German tech giant on May 23, are no longer in effect, the company said in a statement. (source China Daily)
- A string of major foreign banks have all raised their annual economic growth predictions for China, buoyed in particular by optimism about the huge potential of the country’s technology and consumer sectors as ramped‑up pro‑growth policies begin to take effect and the economy swiftly stabilizes after recent tariff tensions. JPMorgan Chase, Goldman Sachs, Morgan Stanley, and Deutsche Bank have raised their forecasts for China’s gross domestic product growth this year to 4.8 percent, 4.6 percent, 4.5 percent, and 4.7 percent, respectively, increasing them by as much as 0.7 percentage point. (source YICAI)
- Amid overwhelming demand for Xiaomi Auto’s new electric vehicle in China, the car production arm of Chinese electronics giant Xiaomi will only consider exporting vehicles starting in 2027, its founder has said. Given the large backlog of domestic orders, the Beijing-based carmaker needs to first prioritize deliveries to buyers in China, Lei Jun said during a livestream event yesterday. Xiaomi Auto will ramp up production of its second model, the YU7, he said, but asked buyers to be patient. (source YICAI)
- China's major bourses have had a mixed end to the week. The Hang Seng is down with Shenzhen whilst the CSI 300 and Shanghai are up. The Hang Seng is down -0.62% today and -1.66% for the week. The CSI 300 is up +0.41% today and +1.60% for the week and the Shanghai Comp up +0.41% and +1.50% for the week. The Shenzhen Comp is down -0.07% today but has had a strong week up +1.50%.
- Yuan Reference Rate at 7.1535 Per USD; Estimate 7.1697
- The CGB 10yr remains stuck in very tight ranges at 1.64%
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
CHINA: Country Wrap: Consumers Being Cautious
Jun-04 05:31
- Chinese consumer spending faltered during a major holiday even as more people hit the road, suggesting a trade truce with the US is failing to turn around sentiment in an economy reeling from Donald Trump’s tariffs. Travelers spent more than 42.7 billion yuan ($5.9 billion) during a total of 119 million domestic trips made during the three-day Dragon Boat Festival public holiday, each up more than 5% from a year earlier, figures provided by the Ministry of Culture and Tourism showed on Tuesday. (source BBG)
- Chinese Foreign Minister Wang Yi used his first meeting with new US Ambassador David Perdue to complain about recent actions by Washington, underscoring a downturn in relations between the world’s two biggest economies. “Unfortunately, the US has recently introduced a series of negative measures on unfounded grounds, undermining China’s legitimate rights and interests,” Wang said during the sit down in Beijing, according to a Chinese government statement. (source BBG)
- The Hang Seng rose +0.72% today, the CSI 300 was up +0.52%, Shanghai up +0.43% and Shenzhen up +0.88%
- Yuan Reference Rate at 7.1886 Per USD; Estimate 7.2005
- Bonds are seeing limited movement with the CGB10YR at 1.70. The CGB10YR has traded in a tight range of 1.61-1.71 since early April.
EUROSTOXX50 TECHS: (M5) Trend Structure Still Bullish
Jun-04 05:28
- RES 4: 5600.00 Round number resistance
- RES 3: 5565.23 1.618 proj of the Apr 7 - 9 - 10 price swing
- RES 2: 5516.00 High Mar 3 and the key bull trigger
- RES 1: 5475.00 High May 20
- PRICE: 5389.00 @ 06:12 BST Jun 4
- SUP 1: 534.61 20-day EMA
- SUP 2: 5262.93 50-day EMA and a key support
- SUP 3: 5142.00 Low May 2
- SUP 4: 5055.00 Low Apr 30
The trend cycle in Eurostoxx 50 futures remains bullish and a recent pullback appears corrective. Moving average studies are in a bull-mode position, highlighting a clear dominant uptrend. Sights are on 5516.00, the Mar 3 high and the key bull trigger. Clearance of this level would strengthen a bull theme. Key support to watch lies at 5262.93, the 50-day EMA. A clear break of this average is required to signal a possible reversal.
SCHATZ TECHS: (M5) Resistance Remains Exposed
Jun-04 05:24
- RES 4: 107.812 0.618 proj of the Mar 6 - Apr 7 - 9 price swing
- RES 3: 107.775 High Apr 7 and the bull trigger
- RES 2: 107.600 High Apr 30
- RES 1: 107.405/550 High May 27 and 30 / High May 7 and 23
- PRICE: 107.350 @ 06:04 BST Jun 4
- SUP 1: 107.255 Low May 29
- SUP 2: 107.195/070 Low May 22 / 13 and the bear trigger
- SUP 3: 106.965 Low Apr 9 and a key support
- SUP 4: 106.928 61.8% retracement of the Mar 6 - Apr 7 bull cycle
Schatz futures are in consolidation mode. A bull cycle that started May 13, remains intact. The recent breach of 107.335, the May 12 / 20 high, continues to signal a stronger reversal and has exposed 107.550, the May 7 / 23 high. A clear breach of this level would strengthen a bullish theme. For bears, a deeper pullback would instead signal scope for an extension towards 106.965, the Apr 9 low. The bear trigger is 107.070, the May 13 low.
