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MNI MARKETS ANALYSIS - Falling Chinese Liquidity Continues To Weigh On Risky Assets

MNI Markets Analysis: Bitcoin Bears Pause For Breath

Executive Summary:

  • In this article, we review a series of charts that we have recently highlighted that show the strong co-movements between Chinese 'liquidity', which we define as the annual change in the Total Social Financing (TSF) 12M sum, and domestic and international asset prices, such as:
    • China tech stocks, which are down 35% since their February high
    • EURUSD exchange, flirting with key support level at 1.17
    • LT US bond yields
  • In addition, we also highlight the short-term to oil prices given the recent deterioration in Covid, especially in Asia.

See full report here:

China liquidity .pdf


SourceL Bloomberg/MNI

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