MNI China Daily Summary: Friday, September 6

MNI BRIEF: China To Address Consumption In Next Five-year Plan

MNI: PBOC Net Injects CNY111.4 Bln via OMO Friday

CHINA PBOC CONDUCTS CNY141.5 BLN VIA 7-DAY REVERSE REPOS FRI

MNI: PBOC Sets Yuan Parity Lower At 7.0925 Fri; +2.94% Y/Y

CHINA SETS YUAN CENTRAL PARITY AT 7.0925 FRI VS 7.0989

MNI: EUROZONE Q2 GDP +0.2% Q/Q, +0.6% Y/Y

MNI: FRANCE JUL INDUSTRIAL PRODUCTION -0.5% M/M, -2.2% Y/Y

MNI: GERMANY JUL EXPORTS +1.7% M/M; IMPORTS +5.4% M/M

AUSTRALIA: Albanese Lines Up Budget for May Election

AUSTRALIA: Albanese Lines Up Budget for May Election

UK: Week Ahead

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EGBS: Stabilise After Early Rally, US Payrolls In Focus

EGBS
EurozoneBulletGlobalFixed Income BulletsRegionMarkets

Bund futures have stabilised just above the Aug 22 high after core FI rallied through the morning, currently +55 at 134.60. A clear breach of the Aug 22 resistance (at 134.50) would expose 134.95, a Fibonacci retracement level.

  • Soft industrial production data from Germany and France will have supported FI this morning alongside heavy European equity performance.
  • The Eurozone Q2 final GDP reading was revised a tenth lower to 0.2% Q/Q, which wasn’t much of a surprise after Irish data saw a downward revision yesterday.
  • Meanwhile, compensation per employee growth was 4.3% Y/Y, well below the Eurosystem staff’s 5.1% June projection (but again, this wasn’t a meaningful surprise for markets).
  • The German cash curve has lightly bull flattened, while 10-year peripheral spreads to Bunds are slightly wider owing to the weak equity performance.
  • The 10-year OAT/Bund spread continues to hover around 70bps, with new PM Barnier now needing to form a Cabinet with President Macron.
  • The US payrolls release remains the key focus for global markets this afternoon.
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Bund futures have stabilised just above the Aug 22 high after core FI rallied through the morning, currently +55 at 134.60. A clear breach of the Aug 22 resistance (at 134.50) would expose 134.95, a Fibonacci retracement level.

  • Soft industrial production data from Germany and France will have supported FI this morning alongside heavy European equity performance.
  • The Eurozone Q2 final GDP reading was revised a tenth lower to 0.2% Q/Q, which wasn’t much of a surprise after Irish data saw a downward revision yesterday.
  • Meanwhile, compensation per employee growth was 4.3% Y/Y, well below the Eurosystem staff’s 5.1% June projection (but again, this wasn’t a meaningful surprise for markets).
  • The German cash curve has lightly bull flattened, while 10-year peripheral spreads to Bunds are slightly wider owing to the weak equity performance.
  • The 10-year OAT/Bund spread continues to hover around 70bps, with new PM Barnier now needing to form a Cabinet with President Macron.
  • The US payrolls release remains the key focus for global markets this afternoon.