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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
- In the past 15 years, investors have attributed an economic importance to the dynamics of real M1 money growth in the major economies as it has historically acted as a strong leading indicator of risky assets, especially equities.
- While inflation continues to surprise positively in inflation in China, with PPI inflation coming in higher than expected in at 9.5% in August (vs. 9% exp.), M1 money supply has been gradually declining since the start of the year (falling to 4.2% in August vs. 4.5% exp.), resulting in a sharp fall in real M1 money growth.
- This chart shows that China real M1 money growth has strongly led EM cyclical stocks (financials) by 6 months.
- With demand for the US Dollar rising as the Fed taper nears, the downside risk for EM cyclical stocks has been increasing significantly in recent weeks.
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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