China stimulus gets mixed reviews
Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com
CHINA STIMULUS GETS MIXED REVIEWS
Beijing's latest stimulus pledges were met on Monday with a mixed and volatile response in Chinese stocks, with investors showing no consensus view on promises over the weekend that were long on intent but short on details.
Hong Kong shares got off to a choppy start before turning decisively lower, in contrast with their peers in mainland China which mostly traded higher.
Some analysts attributed the divergent performance to the lack of a dollar figure for the package, which may have mattered more to foreign investors than to their Chinese counterparts.
The sweeping measures - from helping local governments tackle their debt problems to supporting the property market and replenishing state banks' capital - underscored policymakers' commitment to supporting the ailing Chinese economy.
But the limited scope of efforts to boost domestic consumption remains a huge concern for investors, particularly after data on Sunday showed China's consumer inflation unexpectedly eased in September while producer price deflation deepened.
The mixed picture across Chinese markets on Monday has set a negative tone for Europe, where EUROSTOXX 50 futures STXEc1 and FTSE futures FFIc1 both fell around 0.1% each.
Shares of European luxury goods companies will be in focus given the attention to China, with a gauge of 10 top European luxury stocks .STXLUXP already up nearly 9% since Sept. 24, when Beijing unveiled its most aggressive stimulus since the pandemic.
The week also brings a raft of data from China, including the country's third-quarter growth figures on Friday, so there will be lots for investors to chew on in the coming days.
China aside, a rate decision by the European Central Bank is due on Thursday, where expectations are for policymakers to deliver a 25-basis-point rate cut. UK inflation data is due on Wednesday.
Remarks from the Federal Reserve's Neel Kashkari and Christopher Waller are expected later on Monday, and there is strong interest in what they might say about the central bank's rate outlook.
An outsized 50-basis-point rate cut next month is now off the table, given signs of a resilient U.S. economy, and that's kept the dollar well-supported and hovering near a seven-week high against a basket of major peers on Monday.
Key developments that could influence markets on Monday:
- Fed's Kashkari, Waller speak
- France reopening of 3-month, 6-month, 7-month and 1-year government debt auctions
- Germany reopening of 1-year government debt auction
(Rae Wee)
*****
China's fiscal stimulus plan gets muted reaction https://reut.rs/40369kP
Annual change in China’s consumer prices https://reut.rs/3YlIwCu
Aset Terkait
Berita Terbaru
Pengungkapan: Entitas XM Group menyediakan layanan khusus eksekusi dan akses ke Fasilitas Trading Online kami, yang memungkinkan Anda untuk melihat dan/atau menggunakan konten yang tersedia pada atau melalui situs, yang tidak untuk mengubah atau memperluas, serta tidak mengubah atau memperluas hal tersebut. Akses dan penggunaan ini selalu sesuai dengan: (i) Syarat dan Ketentuan; (ii) Peringatan Risiko; dan (iii) Pengungkapan Penuh. Oleh karena itu, konten disediakan hanya sebagai informasi umum. Anda juga harus ketahui bahwa konten Fasilitas Trading Online kami bukan sebagai ajakan atau tawaran untuk untuk melakukan transaksi apa pun di pasar finansial. Trading di pasar finansial mana pun melibatkan tingkat risiko yang signifikan pada modal Anda.
Semua materi yang diterbitkan di Fasilitas Trading Online kami hanya untuk tujuan edukasi/informasi dan tidak boleh mengandung nasihat dan rekomendasi finansial, pajak investasi atau trading, catatan harga trading kami, penawaran, permintaan, transaksi dalam instrumen finansial apa pun atau promo finansial untuk Anda yang tidak diminta.
Konten pihak ketiga apa pun, serta konten yang disiapkan oleh XM, seperti opini, berita, riset, analisis, harga, informasi lain atau link ke situs pihak ketiga yang tersedia "sebagaimana adanya", sebagai komentar pasar umum dan bukan menjadi nasihat investasi. Sejauh konten apa pun ditafsirkan sebagai penelitian investasi, Anda harus memperhatikan dan menerima bahwa konten tersebut tidak dimaksudkan dan belum disiapkan sesuai dengan persyaratan hukum yang dirancang untuk mempromosikan kemandirian riset investasi dan dengan demikian akan dianggap sebagai komunikasi pemasaran di bawah hukum dan peraturan yang relevan. Mohon dipastikan bahwa Anda telah membaca dan memahami Notifikasi pada Riset Investasi Non-Independen dan Peringatan Risiko kami mengenai informasi di atas, yang dapat diakses disini.
