Chinese stocks up, as Fed hikes, BoE and Turkey to decide [Video]
|Chinese stocks had their best day since 2008 yesterday, as the government said it will ease the crackdown, support property and technology stocks and stimulate economy.
Nasdaq’s Golden Dragon China index gained close to 33%, yet risks prevail: we are still in a China that is no longer the land of opportunity of before Xi Jinping. Plus, US maintains a hardline on the Chinese listings in the US, insisting that the companies listed in the US should provide complete access to audits, with the threat of getting de-listed if they don’t comply.
The Federal Reserve (Fed) raised its interest rate by 25bp as expected for the first time since the beginning of the pandemic, and more importantly, said that the rate hikes will continue to tame inflation as the US economy looks strong enough to withstand a rapid normalization to avoid pushing the Fed into a darker stagflation environment.
The kneejerk reaction to the decision was an early selloff then a strong rebound.The question is, could it last?
Elsewhere, Bitcoin remained stoic despite a broad-based risk rally, while the US dollar eased allowing the EURUSD trade above 1.10, and Cable above 1.31.
Today, the Bank of England (BoE) and the Central Bank of Turkey (CBT) will give their latest monetary policy verdicts.
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