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China Deflation Pressure Worsens as Economy Slumps, Survey Shows By Bloomberg

(Bloomberg) — Deflationary pressure in China worsened in the fourth quarter as the economy slumped, with price-growth likely to be subdued even when the economy rebounds later this year, according to China Beige Book International.  Companies recorded the weakest growth in wages and input costs in the final three months of 2022 since mid-2020, CBBI […]

US, China Inflation and Reopening Impact

The two largest economies in the world are expected to report inflation figures later this week. But, by far, the US figure is expected to be the most important. The yuan trades within a bound set by the PBOC, which limits the impact that data can have. However, the broader implication of prices and China, […]

China December M2 money supply +11.8% vs +12.2% y/y expected

Prior +12.4% New yuan loans ¥1.4 trillion vs ¥1.1 trillion expected Prior ¥1.2 trillion The numbers continue to support the narrative that China is aiding the market recovery at least, particularly so after having been crippled by its previous zero-Covid policy. For some context, the new yuan loans issued throughout 2022 is a record, coming […]

Globalization is not dead, but it is facing a big tail-risk, expert says

Reports that globalization is dead are overstated, a top economist says. Conventional wisdom has it that globalization will suffer in the aftermath of the pandemic and Russia’s war in Ukraine. The Biden White House’s move to reshore manufacturing and to deny China access to advanced technologies are seen as further steps away from a robust […]

Asia FX rallies on China reopening, yuan at over 4-mth high By Investing.com

By Ambar Warrick  Investing.com– Most Asian currencies shot up on Monday, with the Chinese yuan hitting a four-month high after the country reopened its international borders, while hopes of a less hawkish rhetoric from the Federal Reserve also weighed on the dollar and supported regional units.  The jumped 0.7% to 6.7912 against the dollar, its strongest […]

XAU/USD renews eight-month high near $1,880 on China concerns, softer US Dollar

Gold price grinds higher after refreshing multi-day high. China unlock, PBOC’s gold stocking underpins XAU/USD run-up. US Dollar bears the burden of downbeat data, mixed Fedspeak. Light calendar, cautious mood ahead of US inflation figures probe Gold buyers. Gold price (XAU/USD) rises to the highest levels since early May 2022 as the risk-on mood joins […]

China mainland and HK shares rising, yuan too

The reopening trade, and the propping up of property, continues to provide a tailwind for China. China stocks higher on the session: Onshore yuan got a circa 6950 point revaluations at the reference rate setting today: Weekend news from China: (Gold Gold Gold is the most widely traded and important commodity. Prized for its historical […]