China: Property price inflation ticks higher in June – Nomura

Sandeep Kanihama FXStreet Contributor

Analysts at Nomura note that the simple average of property price inflation across 70 cities of China continued to rise in June, by 0.3 percentage points (pp) to 1.1% m-o-m.

Key Quotes

“The number of cities with sequentially higher prices increased to 63 in June from 61 in May, while the number of cities with lower or flat prices fell further to seven.”

“Property price inflation in Tier-1 cities edged up to 0.5% m-o-m in June from 0.4% in May, again driven mainly by prices in Guangzhou, which grew by 1.9% m-o-m in June.”

“Property price gains in Tier-2 cities accelerated further, by 0.4pp to 1.3% m-o-m in June, likely boosted by favourable policies in those cities to attract talent inflows.”

“Despite sequentially higher property prices, we believe downside pressures on the property sector are forthcoming, as evidenced by the slowing growth of property investment, sales, and funds for property investment.”

“We maintain our view of potential housing demand as stretched, given already-high property prices and household leverage.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

GBP/USD hits multi-week tops around 1.3560

GBP/USD gathers fresh steam and advances to new three-month peaks near the 1.3560 zone on Friday. Cable’s sharp move higher comes after three daily drops in a row and follows the increasing selling pressure hurting the Greenback.

EUR/USD pops to fresh two-month highs, targets 1.1600

EUR/USD advances markedly, revisiting the upper 1.1500s for the first time since mid-June. The pair’s sharp uptick comes on the back of a strong retracement in the US Dollar amid BoJ intervention chatter and despite steady uncertainty in the Middle East.

Gold extends its struggle with $4,400, but bullish bias intact

Gold is holding the previous recovery from near $4,300 on early Monday, struggling around the key $4,400 level. However, buyers retain control as the new week kicks in, with all eyes on the Middle East updates and the Minutes of the US Federal Reserve July monetary policy meeting.

Bitcoin holds critical support, Ethereum awaits directional move, XRP weakens

Bitcoin, Ethereum, and Ripple begin the week on a cautious note after slipping over 3%, 1.5%, and 3.5%, respectively, in the previous week. BTC finds support around the key $62,300 level while ETH continues to trade sideways. Meanwhile, XRP hovers around $1.00, with weakening momentum suggesting deeper losses.

US Dollar Weekly Forecast: Economic cracks challenge Fed rate bets

It was a strange week for the US Dollar: while the geopolitical situation has remained largely unchanged, with the usual back-and-forth between the US, Iran, and occasional third parties, disappointing domestic data have re-emerged, reducing expectations of potential tightening by the Federal Reserve in the next few months.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.