Clear US response on China tariffs is coming soon – Bloomberg

“A clear US response on China tariffs is coming soon,” said US Deputy Commerce Secretary Don Graves in a Bloomberg TV interview. The diplomat also mentioned that the US will take a balanced approach on China tariffs, per the news. Additional comments Expect Congress to pass competition bill in next weeks. Export restrictions are having … Read more

USD/CNH slumps to one-week low below 6.6700 as China eases covid restrictions for travelers

USD/CNH plummets almost 200 pips on upbeat headlines from China. China reduces quarantine time for international travelers, vows timely policy measures to cope with economic risks. Sellers remain as G7 updates challenge riskon mood. US CB Consumer Confidence, Fedspeak eyed for fresh impulse. USD/CNH takes offers to renew intraday low around 6.6685 as sellers cheer … Read more

Steel Price improves as global output declines during January-May period

Steel Price remains firmer for the third consecutive day, keeping the bounce off yearly low. Over 6.0% fall in the global steel output joins sluggish USD to underpin bullish bias. Fears of recession, headlines concerning China adds filter to the north. Steel Price extends the previous week’s recovery towards 4,300 Chinese yuan (CNH), around 4,280 … Read more

China’s economy improves in June from lockdown-induced slump – Bloomberg Economics

China’s economy showed some fresh signs of life in June as the country gradually emerged from the covid-induced lockdowns, but the recovery remains muted, Bloomberg Economics’ aggregate index of eight early indicators showed on Monday. Key takeaways The overall gauge returned to the neutral level after deteriorating for two straight months. Economic activity picked up … Read more

Steel Price rebounds from yearly low as risk-aversion ebbs, recession fears favor bears

Steel price licks wounds at six-month low after falling nearly 500 yuan per metric tonne during the week. Lack of major data/events, softer USD allowed bears to take a breather. Fears of recession, doubts about production cuts and China’s covid conditions provide a trifecta attack on prices. Steel Price consolidates weekly losses during Friday’s sluggish … Read more

China should be wary of property market risks – Herald

“China’s monetary policy should be alert to the lagging effect and subprime mortgage risks while focusing on stabilizing prices and the property market,” the 21st Century Business Herald said in its editorial story, citing a study by Bank for International Settlements (BIS). Additional takeaways “A 1% drop in nominal short-term interest rates would lead to … Read more

Steel price extend losses after three-day consolidation as China oversupply fears escalate

Steel prices have to witness a steep fall after a three-day consolidation. Oversupply of steel has resulted in has pushed the steel prices to four-month lows. Zero Covid-19 policy in China will keep the steel prices on the tenterhooks. Steel prices have weakened further after a three-day consolidation on the Shanghai Futures Exchange. The asset … Read more

China’s President Xi pledges to meet growth target

In a keynote speech to a virtual BRICS Business Forum on Wednesday, Chinese President Xi Jinping vowed to meet economic targets for the year despite the country battling with the covid outbreaks and a weak housing market. Key quotes China will “strengthen macro-policy adjustment and adopt more effective measures to strive to meet the social … Read more

GDP now seen expanding 4.1% in 2022 – UOB

Economist at UOB Group Ho Woei Chen, CFA, re-assesses the performance of the Chinese economy this year. Key Takeaways “China’s economic data were better than expected in May. Industrial production has shown greater resilience as it returned to expansion but retail sales contracted for the third straight month. Fixed asset investment slowed but is expected … Read more