Marketmind: When the Dragon sneezes, Europe catches a cold
As pressure builds on China’s tech and real estate moguls and its economic growth falters, markets worldwide are starting to get uneasy. But it’s Europe, with its export-oriented economy and supercharged luxury stocks reliant on affluent Asian shoppers, which is likely to feel the most genuine pain.
China jitters pull Asian stocks to seven-month low
Asia’s stock markets fell to fresh troughs on Tuesday led by a third straight session of heavy selling in Chinese internet giants, while bond and currency markets traded on edge ahead of the Federal Reserve policy meeting.
China Evergrande shares, bonds slump as investor worries persist
Shares and bonds of China Evergrande (3333.HK), the country’s most indebted developer, stayed in the red on Tuesday as worries over its financial health persisted even after a local housing authority removed an earlier sales suspension at two real estate projects.
Analysis: China’s RRReminder that economies remain fragile
China’s decision on Friday to give its economy a 1 trillion yuan ($154 billion) shot in the arm has given investors a reminder that even the largest economies are likely to need the occasional pick-me-up while the coronavirus pandemic lasts.
Fed keen to be ‘well positioned’ to act on inflation, other risks, minutes show
Federal Reserve officials last month felt substantial further progress on the U.S. economic recovery “was generally seen as not having yet been met,” but agreed they should be poised to act if inflation or other risks materialized, according to the minutes of the central bank’s June policy meeting.
Australia’s cbank tapers QE but affirms low rates outlook
Australia’s central bank on Tuesday took its first step towards tempering its massive stimulus as employment proves far stronger than previously expected, although actual rate hikes remain a distant prospect.
Pandemic boom drives UK house prices up by most since 2004
British house prices jumped by the most in more than 16 years this month, soaring by 13.4% from June 2020, and demand is expected to stay strong while a coronavirus emergency tax break remains in place, mortgage lender Nationwide said.
ECB should retain flexibility of emergency stimulus scheme – Panetta
The European Central Bank should retain the exceptional flexibility of its emergency bond buys after the current crisis, ECB board member Fabio Panetta said on Monday, setting the stage for potential conflict with more conservative policymakers.
The great exit: central banks line up to dial back emergency stimulus
The U.S. Federal Reserve is projecting a faster timetable for interest rate rises and Norway’s central bank is preparing markets for four rate hikes by mid-2022, the latest signs policymakers are preparing to exit pandemic-driven stimulus.
Analysis: Shaken but not stirred: bond markets may weather hawkish Fed for now
A hawkish shift at the U.S. Federal Reserve has ended a weeks-long rally in bond markets, but don’t bet on a repeat of the sharp selloff seen earlier this year just yet.
