MNI China Daily Summary: Thursday, July 4

MNI BRIEF: China Has Four Months To Negotiate EU EV Agreement

RPT-MNI INTERVIEW: ISM Choppiness Not A Clear Signal For Worry

MNI: PBOC Net Drains CNY98 Bln Via OMO Thurs; Rates Unchanged

MNI: PBOC Sets Yuan Parity Lower At 7.1305 Thurs; -0.79% Y/Y

CHINA PBOC CONDUCTS CNY2 BILLION VIA 7-DAY REVERSE REPOS THURS

Factory Orders Decline as Non-EU Orders Dip

DMP survey increases probability of August cut

MNI: UK JUNE CONSTRUCTION PMI 52.2 (FCST: 54.0); MAY 54.7

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

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CNH Underperforms USD Weakness, Equity Losses Weigh

CNH

CNH underperformed the broader USD sell off on Monday. USD/CNH couldn't get back sub 7.1500, while selling resistance was evident on moves above 7.1650. We last tracked close to 7.1600, having lost 0.14% for Monday's session. Spot USD/CNY finished up lower at 7.1528, slightly above Friday closing levels. The CNY NEER (J.P. Morgan index) fell 0.14% to 123.74.

  • The slightly higher USD/CNY fixing yesterday was an early focus point (the first rise in 6 sessions), although a lower 4:30pm close yesterday and weaker USD levels may see the fixing lowered today.
  • The PBoC vowed to keep CNY basically stable in its Q3 monetary policy report, while urging banks to lower real lending rates (see this BBG link).
  • The Golden Dragon index lost 1.58% in US trade, while CNH saw headwinds yesterday from weaker equity sentiment, although we finished away from lows for the major indices (CSI 300 down 0.74%). Property concerns, coupled with slowing industrial profits weighed. Financial stocks also underperformed.
  • China President Xi Jinping is set to visit Shanghai today and meet with several tech companies, per the SCMP.
  • The local data calendar is empty until Thursday's PMI prints.
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