The CSI 300 is up 4%, and the Hang Seng is nearing that level as well, as China's central bank unleashed a blitz of policy support for the economy. The People’s Bank of China Governor, Pan Gongsheng, announced a cut to the amount of money banks must hold in reserve, lowering it to the lowest level since at least 2020, along with a cut to a key policy rate. This marked the first time both measures were reduced on the same day in at least a decade. The central bank chief also unveiled a package to shore up the nation’s beleaguered property market, including lowering borrowing costs on as much as $5.3 trillion in mortgages and easing rules for second-home purchases. China will also allow funds and brokers to tap PBOC funds to buy stocks, he added.
Elsewhere, the RBA left policy on hold at 4.35% for a seventh meeting, and Governor Bullock acknowledged that the format of the committee’s discussion had changed this month. She mentioned that there was no explicit consideration of a rate hike on Tuesday, which, relative to the recent past, is a dovish shift. She added that GDP data suggested a softening of the near-term outlook, and the outlook for consumption remained subdued.
In other markets, gold hit a fresh record of $2,636 per ounce, and oil edged higher after Israel launched airstrikes on Lebanon, boosting regional tensions.
The day ahead is light on data, with German IFO and US Consumer Confidence reports being the highlights, along with speeches from the Fed's Bowman, German Buba President Nagel, and Bank of Canada Governor Tiff Macklem to watch for, although there has already been plenty of action.
**For professional investors only** Any opinions, news, research, analyses, prices, or other information contained in this blog is provided as general market commentary and does not constitute (and should not be construed as containing) investment advice or an investment recommendation, or an offer of, or solicitation for, a transaction in any financial instrument. Some of this information may have been provided by third-party sources and, although believed to be reliable, it has not been independently verified and its accuracy or completeness cannot be guaranteed. No representation or warranty, expressed or implied, is made or given by or on behalf of iSAM Securities or its directors or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this blog, and no responsibility or liability is accepted for any such information. As a result, any person acting on any information does so entirely at their own risk. iSAM Securities will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.