Yuan has risen 2% due to China’s state bank intervention
China’s major state-owned banks have been buying the yuan this week, helping it recover against a lower U.S. dollar. This is the first time such banks have done so in the past year, sometimes on behalf of Chinese monetary authorities. The yuan has risen 2% to 7.13 to the dollar in the previous week, its…
Argentina new president Milei will focus on dropping inflation rates
Argentina has elected right-wing libertarian Javier Milei as its president, aiming to rescue the country from triple-digit inflation, a recession, and rising poverty. Milei won 56% against Sergio Massa’s 44%, who conceded. He promises economic shock therapy and plans to close the central bank, abandon the peso, and cut spending. Despite facing challenges such as…
Dollars touch its lowest level since September
Monday’s weak trade ahead of Thanksgiving and lack of major data releases left shares flat and the dollar down against major currencies. The European benchmark STOXX index remained unchanged, while U.S. futures rose. The dollar index bottomed at 103.53, its lowest level since September. Japanese shares reached 1990 highs due to robust results and foreign…
Oil Jump due to shortage supply
Oil futures rose over $1 on Monday as OPEC+ may deepen production restrictions to support prices after four weeks of drop on demand worries. Brent futures increased to $81.92, while West Texas Intermediate crude rose to $77.05. The December WTI contract expires later, but January futures rose to $77.31. OPEC+ sources said they will explore…
China’s central bank : keep interest rates low and stable
China’s central bank has urged lenders to limit interest rates on an interbank lending product due to rising short-term yields on bank debt and funding market difficulties. Large commercial lenders are warned not to offer NCDs at excessive rates. NCD issuance rates and secondary market rates have grown since August to near six-month highs. The…
Government bond issuance are 16 years high
Investors will focus more on economic fundamentals than rising U.S. government debt and fiscal deficits, which have raised bond yields this year. Concerns over rising bond issuance and fiscal deficits have driven government bond rates to 16-year highs this year, leading Fitch and Moody’s to downgrade U.S. government creditworthiness. Citi’s global chief economist, Nathan Sheets,…
The Fed interest rates keep inflation on track
The Federal Reserve is taking a patient approach to maintaining interest rates until inflation cools. San Francisco Fed President Mary Daly suggested that the Fed may not have done enough to push inflation to 2%, but its quick rate rises may not be fully felt yet. Boston Fed President Susan Collins emphasized the need for…
Student loan payment has affected retail sales
Walmart reported a strong Q3 revenue of $160.8 billion, with US same-store sales rising 4.7%. However, fashion and home goods sales declined due to stretched shoppers. Walmart’s full-year earnings per share projection increased to $6.40 to $6.48. Target’s early holiday read was not encouraging, with CEO Brian Cornell stating that “resilient” consumers have weathered student…