MNI China Daily Summary: Friday, July 19

MNI BRIEF: China To Boost Consumer Spending, New Industries

MNI BRIEF: China Enhances Fiscal Response To Boost Economy

MNI BRIEF: China To Promote Migrates' Rights, Reform Hukou System

MNI: PBOC Net Injects CNY57 Bln Via OMO Fri; Rates Unchanged

MNI: PBOC Sets Yuan Parity Higher At 7.1315 Fri; -0.52% Y/Y

Intermediate PPI Deflation Continues To Fade in June

MNI: GERMANY JUNE PPI  +0.2 % M/M (+0.1% FCAST, 0.0% PRIOR)

Disappointing data but no market reaction

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

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Firmer To Start, Labour’s Medium-Term Plans Eyed

GILTS
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Gilts firm alongside global peers, with little UK-specific market reaction after Labour attained a commanding majority in parliament.

  • Futures last +23 at 97.57, initial resistance at Wednesday’s high (97.78).
  • Still, short-term bearish technical risks are noted despite the recent bounce. Initial support seen at the July 1 low (96.57).
  • Cash gilt yields ~2bp.
  • Labour’s fiscal plan will provide a key point of interest for gilt traders as their first term progresses, with the party being relatively successful when it comes to playing down related worries during the election campaign. CGT matters will likely dominate here, while the size of the majority may embolden policymaking.
  • The UK calendar is sparse, leaving focus on the election fallout and U.S. NFPs.
  • Monday will see the REC/KPMG report on jobs and the first round of post-election BoE communication, coming from the hawkish Haskel.
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Gilts firm alongside global peers, with little UK-specific market reaction after Labour attained a commanding majority in parliament.

  • Futures last +23 at 97.57, initial resistance at Wednesday’s high (97.78).
  • Still, short-term bearish technical risks are noted despite the recent bounce. Initial support seen at the July 1 low (96.57).
  • Cash gilt yields ~2bp.
  • Labour’s fiscal plan will provide a key point of interest for gilt traders as their first term progresses, with the party being relatively successful when it comes to playing down related worries during the election campaign. CGT matters will likely dominate here, while the size of the majority may embolden policymaking.
  • The UK calendar is sparse, leaving focus on the election fallout and U.S. NFPs.
  • Monday will see the REC/KPMG report on jobs and the first round of post-election BoE communication, coming from the hawkish Haskel.