China eases policy amid property slump and lockdowns

Today's news headlines:

‘China banks cut key rate by record to boost ailing economy’. Chinese banks have cut a key rate for home mortgages—the five-year loan prime rate—to 4.45% from 4.60%, marking a larger-than-expected easing in policy. The policy move aims to boost loan demand, which has suffered because of China’s property slump, as well as consumer and business confidence which has been damaged by Covid lockdowns. (Bloomberg)

‘UK consumer confidence falls to its lowest level since 1970s’. UK consumer confidence fell to its weakest level in at least 48 years, adding to pressure on Chancellor Rishi Sunak to help UK households with the cost-of-living crisis. The market research group GfK showed its consumer confidence figure fell to the lowest level since its records began in 1974, suggesting consumers are more concerned about the current economic situation than the UK’s decision to leave the EU or the 2008 financial crisis. (Bloomberg)


Today

European equities and US equity futures opened higher on this morning following China’s decision to cut a key loan rate to boost its economy. European sovereign yields ticked higher and oil prices remained steady. The Japanese Yen weakened after two consecutive days in the green while the US Dollar opened higher on a trade-weighted basis.

Events

GfK Consumer Confidence (May): -40 (est. -39)
Japanese Consumer Price Index YoY (Apr): 2.5% (est. 2.5%)
UK Retail Sales MoM (Apr): 1.4% (est. -0.3%)
Eurozone Consumer Confidence (May): 3:00PM

Interbank rates:

GBP/USD – 1.2488
GBP/EUR – 1.1815
EUR/USD – 1.0570
USD/CAD – 1.2792

The markets are moving. To speak to our team, please call +44 (0)20 3465 8200.