MNI BRIEF: Fed's Bostic - Economy Moving Ever Closer to Target

MNI China Daily Summary: Tuesday, October 8

MNI BRIEF: Japan's Sept Sentiment, Outlook Indexes Fall

MNI BRIEF: Brazil Requires Prudent Monetary Policy - Galipolo

MNI BRIEF: China Local Govs To Speed Up Fiscal Spending

MNI: PBOC Net Drains CNY886.9 Bln via OMO Tuesday

EZ/UK Bond Supply Calendar: UK, DE Auction on Wednesday

EZ/UK Bond Supply Calendar: UK, DE Auction on Wednesday

MNI: US REDBOOK: OCT STORE SALES +5.3% V YR AGO MO

CANADA: Politics Week: Parliament Opens With Early Election Threats

AUSTRALIA: Albanese Lines Up Budget for May Election

AUSTRALIA: Albanese Lines Up Budget for May Election

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

OIL: Crude Jumps On Hopes China Stimulus Will Boost Demand

OIL
EM BulletCommoditiesEnergy BulletsBulletMarketsFixed Income BulletsForeign Exchange Bullets

Oil prices have jumped after the PBoC announced numerous measures to stimulate China’s economy. WTI is up 1% to $71.08/bbl, close to the intraday high, after a low of $70.44 before the news. Brent rose 0.9% to $74.55/bbl after a low of $73.95. The market also remains nervous regarding an escalation the situation between Israel and Hezbollah, which is likely to be discussed by the UN today. The USD index is little changed.

  • The PBoC announced a 20bp cut in the 7-day repo to 1.5% and 25bp for mortgage rates, as well as a 25bp reduction in the RRR with possibly another 25-50bp before year end depending on conditions. There are also measures to support China’s equity market and stabilise bonds. There has been concern it wouldn’t meet its 5% growth target, which had spooked crude.
  • China will continue to be monitored closely, but now for signs that the monetary stimulus is having an effect on demand.
  • Israel attacked Hezbollah targets in Lebanon on Monday, while Iran said that it is prepared to intervene to de-escalate the worsening situation as long as Israel does too.
  • US industry-based inventory data is published today. There have been significant stock drawdowns recently but also signs that product demand is easing.
  • Later the Fed’s Bowman speaks and US July housing data, September consumer confidence, Philly & Richmond Fed indices print. There’s also September German Ifo.
227 words

To read the full story

Close

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.

Oil prices have jumped after the PBoC announced numerous measures to stimulate China’s economy. WTI is up 1% to $71.08/bbl, close to the intraday high, after a low of $70.44 before the news. Brent rose 0.9% to $74.55/bbl after a low of $73.95. The market also remains nervous regarding an escalation the situation between Israel and Hezbollah, which is likely to be discussed by the UN today. The USD index is little changed.

  • The PBoC announced a 20bp cut in the 7-day repo to 1.5% and 25bp for mortgage rates, as well as a 25bp reduction in the RRR with possibly another 25-50bp before year end depending on conditions. There are also measures to support China’s equity market and stabilise bonds. There has been concern it wouldn’t meet its 5% growth target, which had spooked crude.
  • China will continue to be monitored closely, but now for signs that the monetary stimulus is having an effect on demand.
  • Israel attacked Hezbollah targets in Lebanon on Monday, while Iran said that it is prepared to intervene to de-escalate the worsening situation as long as Israel does too.
  • US industry-based inventory data is published today. There have been significant stock drawdowns recently but also signs that product demand is easing.
  • Later the Fed’s Bowman speaks and US July housing data, September consumer confidence, Philly & Richmond Fed indices print. There’s also September German Ifo.