Chinese economy under pressure
Today's news headlines:
‘China unveils support measures as lockdowns batter economy’. With Coronavirus cases rising and lockdowns sweeping throughout China, the People’s Bank of China has pursued supportive measures. The central bank has cut reserve requirements for banks while encouraging institutions to support infrastructure projects. Growth forecasts are falling across the board for the second quarter in China, with Goldman Sachs expecting financial support to continue as the country continues on the zero-Covid policy path. (Financial Times)
‘Zelensky says Russia has begun renewed offensive in eastern Ukraine’. Russia has refocused its military efforts in the Donbas region in eastern Ukraine as the war enters its 55th day. Shaping operations have been carried out, which entails preparing the ground for a fresh offensive with heavy artillery and aviation support being consolidated in the area. The US will be implementing its ‘training the trainers’ approach in the coming days, allowing Ukrainian soldiers to teach others about the new batch of weaponry due to be delivered to the front lines. (Financial Times)
Asian markets were tentative overnight as tech names dragged; the Hang Seng Index moved 2.30% lower. European markets are following the trend, with the Euro Stoxx 50 down 0.60% in early trading. The Japanese Yen hit a 20-year low against the US Dollar as Federal Reserve and Bank of Japan policies diverge.
Japan Revised Industrial Production m/m: 2.0% (est. 0.1%)
US Housing Starts: 1:30PM
Swiss National Bank Chairman Thomas Jordan speaks: 5:30PM
International Monetary Fund meetings: All day
GBP/USD – 1.3001
GBP/EUR – 1.2053
EUR/USD – 1.0786
USD/CAD – 1.2584
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