The
PBoC injected a record $74 billion of Medium-Term Lending Facility credit into
major banks yesterday. This step comes after the central bank has already cut
its reserve requirements three times in 2018, with further cuts expected in the
next couple of months.
It is
becoming evident that China is on the path towards a looser monetary and fiscal
policy. Such steps will eventually support the domestic financial markets. The
CSI 300 Index traded 2% higher on Tuesday, after it fell into a bear market
earlier in June.
Meanwhile,
the Yuan weakened to a 13-month low to trade past 6.8 per dollar. The Yuan’s
fall and Dollar’s strength come despite President Trump’s accusation last week
that China and the E.U. are manipulating their currencies. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html Although a weaker Yuan may
offset some of the trade tariffs’ impact, further sharp declines will likely
lead to capital outflows and another round of panic selling in emerging markets
equities & debt. After breaking 6.8,
all eyes will be on the psychological level 7, which most likely be the trigger
for the selloff.
Bond
markets also seemed to be challenging Trump’s criticism of the Federal
Reserve’s tightening stance. Not only did the U.S. 10-year yields bounced to a
5-week high of 2.97%, but the shorter term 2-year yields also hit a new decade
high of 2.64%, suggesting that the Fed will raise interest rates two more times
in 2018.
Despite
the war of words between President Trump and his Iranian counterpart Hassan
Rouhani, gold and oil prices edged lower on Monday and during early Tuesday
trade. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html The fall in both
commodities suggests that investors are not expecting further escalation in
tensions and are instead focusing on market fundamentals.
The
precious metal is likely to remain under pressure if emerging market currencies
continue to plunge, particularly the Yuan. The correlation between the Yuan and
the Gold has been so strong recently and I think this will continue to be the
case for the foreseeable future. Gold has been on a downtrend since April, and
last week managed to break below the uptrend line from December 2015. The next
critical level to watch is 1,200 as a break below may lead to further selling
pressure.
Have you heard this? Many
Nigerian exporters have been defrauded of huge amount of money in the process
of exporting commodities to foreign countries. Do you know why? They were not
trained on export operations, management, documentations and the best methods
of payment in export trade. This is terrible!!! Nigerians cannot continue to
lose money to foreigners in the course of export business. Exporters, why don’t
you get a practical manual that teaches the stages of export trade from
processing and packaging of commodities to receipt of payment by the foreign
buyers. It teaches export operations, export management, export documentations
and methods of payment in export trade? It is a contemporary step-by-step guide
to export trade. It tells all the contemporary dynamics in export trade. To get
it, click on the link below:
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