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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CHINA
- Today, we saw that the annual change in China real M1 money supply, which we compute as the difference between M1 money supply and PPI inflation, continued to fall in June down 3.3% YoY from -2.9% the previous month.
- Historically, we have seen that China real M1 money growth has acted as a strong leading liquidity indicator for risky assets and especially cyclical stocks (i.e. Financials).
- This chart shows that China real M1 has historically led EM financials by 6 months.
- Could the rise in uncertainty associated to the Delta variant and the sharp contraction in Chinese liquidity continue to weigh on cyclical stocks in the medium term?
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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