(Bloomberg) — Chinese stocks fluctuated in a volatile session after a Treasury briefing over the weekend disappointed investors and a drop in factory prices heightened concerns about the economy.
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Stocks on the region bounced between gains and losses, while Hong Kong stocks fell along with U.S. stock futures. The Chinese Yuan weakened against the US dollar, as did the Australian and New Zealand dollars. Cash Treasurys in Asia are closed due to a holiday in Japan.
Chinese Finance Minister Lan Fo’an pledged more support for the property sector at a highly anticipated weekend briefing, but disappointed some investors by failing to provide headline figures on monetary stimulus. The focus now turns to the next major policy briefing in the coming weeks from the Communist-controlled parliament, which oversees the budget, which could provide further details on further support.
“Investors will need to be much more patient when it comes to the size of the fiscal stimulus,” said Carlos Casanova, senior Asia economist at Union Bancaire Privee. ,” But officials in Beijing probably won’t take a stand on whatever steps will be taken to save the economy.
Before the weekend briefing, money managers were awaiting further fiscal measures to help sustain the rally sparked by the stimulus package announced by authorities in late September. Investors and analysts surveyed by Bloomberg expected China to deploy up to 2 trillion yuan ($283 billion) in new fiscal stimulus on Saturday, including potential subsidies, consumption vouchers and financial support for families with children.
The region’s stock benchmark CSI 300 index recorded its biggest weekly decline since the end of July on Friday, while the Australian and Kiwi indexes, which represent Chinese sentiment among developed market currencies, fell for a second straight week.
Economist Erin HSBC Holdings Plc of Greater China wrote in a note. “More financial support is likely to come through a package worth trillions of yuan, with the next major meeting scheduled for later this month.”
In the commodities sector, Brent crude oil futures fell 1.5% and Singapore iron ore futures reversed early losses. The U.S. dollar continued its upward trend for two consecutive weeks as traders had mixed expectations about the speed of the Federal Reserve’s (Fed) interest rate cuts.
The Monetary Authority of Singapore has not changed its currency settings during six consecutive reviews. Growth and retail sales data from China are expected this week, as well as inflation figures from New Zealand, Canada and the UK. The central banks of Thailand, the Philippines and Indonesia are expected to make policy decisions before the European Central Bank later this week.
The ECB will probably advance its push for global monetary easing, possibly through a rate cut that policymakers had all but ruled out just a month ago.
Barclays Plc strategists, including Themistoklis Fiotakis, said: “Clearly the softer activity data and faster inflation easing have had an immediate impact on both ECB communications and markets, with the ECB now considering a possible 25 basis point cut this week. “We are pricing at 95%,” he wrote. To the client. “We see macro interest rates and interest rate risks in Europe as skewed to the downside, which creates room for euro weakness, especially in the cross.”
Key events this week:
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China trade balance, Monday
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India CPI, Monday
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UK unemployment rate and average weekly earnings, Tuesday
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Eurozone industrial production, Tuesday
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Canadian CPI, Tuesday
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Goldman Sachs, Bank of America, Citigroup earnings, Tuesday
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Republican presidential candidate Donald Trump will be interviewed by Bloomberg Editor-in-Chief John Micklethwaite on Tuesday at the Economic Club of Chicago.
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New Zealand CPI, Wednesday
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Central banks in Thailand, the Philippines and Indonesia decide on interest rates on Wednesday.
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UK CPI, PPI, RPI and House Price Index, Wednesday
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ASML, Morgan Stanley Earnings, Wednesday
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Australian unemployment rate Thursday
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Eurozone CPI, ECB interest rate decision, Thursday
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US Retail Sales, Unemployment Claims, Industrial Production, Business Inventories, Thursday
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TSMC, Netflix Earnings, Thursday
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Japan CPI, Friday
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China GDP, retail sales, industrial production, housing prices, Friday
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UK Retail Sales, Friday
The main movements in the market are:
stock
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S&P 500 futures were down 0.1% as of 11:16 a.m. Tokyo time.
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Nikkei 225 futures (OSE) were little changed.
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Australia’s S&P/ASX 200 index rose 0.5%.
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Hong Kong’s Hang Seng index fell 1.9%.
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The Shanghai Composite Index rose 0.4%.
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Euro STOXX 50 futures were down 0.1%.
call
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The Bloomberg Dollar Spot Index rose 0.1%.
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The euro fell 0.1% to $1.0923.
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The Japanese yen was little changed at 149.21 per dollar.
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The offshore yuan fell 0.2% to 7.0868 per dollar.
cryptocurrency
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Bitcoin fell 0.3% to $62,540.94.
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Ethereum fell 0.6% to $2,446.26.
bond
necessity
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West Texas Intermediate crude fell 1.8% to $74.21 a barrel.
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Spot gold fell 0.4% to $2,645.99 an ounce.
This article was produced with help from Bloomberg Automation.
–With assistance from Matthew Burgess.
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