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PBoC Liquidity & Yuan Dynamics Support Equities

EQUITIES

A sizable net liquidity injection from the PBoC via its MLF mechanism and a firmer yuan helped put a mild bid into e-minis overnight, with the major regional equity indices mostly trading higher during Asia-Pac hours after Monday's M&A/COVID vaccine driven rally on Wall St. (admittedly the latter topic saw mixed news flow as we moved through the day).

  • The exception was the Nikkei 225, which struggled as all of the major sectors lost ground on the day, with Monday's downtick in USD/JPY presenting a headwind.
  • Nikkei 225 -0.6%, Hang Seng +0.4%, CSI 300 +0.3%, ASX 200 +0.1%.
  • S&P 500 futures +5, DJIA futures +42, NASDAQ 100 futures +19.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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