Chinese stocks continue their strong run as investors bet that the Chinese government's stimulus package will kickstart the economy and provide a floor under the stock slump. The Hang Seng and CSI 300 are currently up 1.36% and 1.63%, respectively. Short selling has also been drastically reduced in Hong Kong, and the offshore yuan has strengthened.
Overnight in the US, consumer confidence saw its largest drop since August 2021, driven by concerns about the labour market and economic outlook. Swaps traders are now pricing in 0.75 basis points of rate cuts by the end of the year, suggesting one more major US rate cut. Later this week, additional data on US personal spending will help clarify the outlook for upcoming Fed meetings.
In commodities, a Bloomberg gauge rose for the 11th consecutive day, marking its longest winning streak since January 2018. Gold hit another record, trading above $2,670/oz overnight, while iron ore rallied. WTI crude is currently at $71.50/barrel.
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