Macro Mondays | LIVE | Chinese Stocks Soar Despite Mixed Data | 30|09|24
Episode description
Last week, there was a string of aggressive stimulus announced in China. Existing mortgage loan rates cut, 7-day reverse repo rate dropped by 20bps, minimum downpayment requirement for second homes falling to 15%. Simultaneously, China announced it will allow securities firms, funds and insurers to tap PBOC funds to buy stocks. We have seen the CSI 300 stock index rally significantly accordingly... but will this strength last, and is it representative of a strong Chinese economy? The Answer: No! Follow along as we discuss this and more.
In Europe we have seen rate cuts in several non Euro nations - whilst HSBC are forecasting continued rate cuts from the ECB. US Data is mixed as we see the reaction to the FED's 50bp cut unfold - mortgage applications have increased & US stocks' strength continues. However employment data indicates that everything is not well.
S&P & Gold's momentum remain strong as Gold continues to exceed previous all-time highs. Brodie and Todd also discuss the ongoing events in the Middle-East & the impact on macroeconomics, EURJPY, Bitcoin's progress, and more.
Key data releases this week:
Monday: Chicago PMI, FEDs Powell speaks
Tuesday: U.S. ISM mfg PMI, JOLTS
Wednesday: ADP payrolls
Thursday: ISM services PMI
Friday: U.S. payrolls jobs report