MNI China Daily Summary: Friday, April 26

MNI BRIEF: China, US Should Strengthen Dialogue, Cooperation

MNI BRIEF: SNB Framework Reform 'Playing With Fire' - Steiner

MNI: PBOC Conducts CNY2 Bln Via OMO Fri; Liquidity Unchanged

CHINA PBOC INJECTS CNY2 BILLION VIA 7-DAY REVERSE REPOS FRI

MNI: PBOC Sets Yuan Parity Lower At 7.1056 Fri; -4.56% Y/Y

MNI: BAKER HUGHES US RIG COUNT 613; OIL RIGS 506; GAS RIGS 105

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT FINAL APR INDEX 77.2

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

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

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

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Summary – April 19

LATAM
BulletEM BulletEmerging Market NewsHomepage
  • Mexico retail sales data for February take the focus in LatAm today, followed by the latest BCCh traders survey and Colombia February trade figures. In the G10, there are no notable data releases set for Friday, keeping focus on the central bank speaker slate. The Fed's Goolsbee will speak, followed by the ECB's Nagel.
  • USD – Markets underwent a significant volatility spike overnight on Friday, as news that Israel had launched missile strikes on Iran underpinned concerns of renewed geopolitical risk in the Middle-East. Risk sold off sharply, putting the USD on the front foot, equities lower and the JPY markedly higher. Emerging markets currencies came under particular pressure, with the MXN among the most exposed. The market impact didn't stick, however, with the missile strike appearing limited in nature and closer to a warning shot.
  • Global News:
    • ISRAEL / IRAN (MNI) – Israel and Iran have played down the significance of an overnight Israeli strike on a military facility near the Iranian city of Isfahan. It is unclear the extent of the damage, but the attack, whilst hitting targets within Iran, appears to fallen short of the worst-case scenario of a major strike of Iranian nuclear or energy infrastructure. The attack appears to have fulfilled a key strategic deterrent objective for Israel by demonstrating Israel can strike targets within Iran, but restraining from a major escalation.
    • COMMODITIES – Oil wiped out an earlier sharp jump as Iranian media appeared to downplay the impact of Israeli strikes that followed last weekend’s unprecedented bombardment by Tehran. Brent crude traded little changed near $87 a barrel after soaring more than 4% above $90 on renewed concerns over the potential for a wider conflict that could endanger oil supplies.
    • US (MNI) – Atlanta Fed Bostic said Thursday he’s comfortable keeping interest rates steady, reiterating it will not be appropriate to lower borrowing costs until toward the end of the year. "I don't think it will be appropriate to drop rates soon because if we drop rates there is a possibility that there's excess energy in the economy that puts upward pressure on prices and moves us even further from our target," he said.
    • EU – It’s still too early to declare that euro-area inflation has been vanquished, even if the ECB is on track to deliver a first interest-rate cut in June, Governing Council member Martins Kazaks said. The risk of stickier-than-expected price growth — something the US is experiencing at the moment — “is part of the game,” Kazaks said in an interview in Washington.
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  • Mexico retail sales data for February take the focus in LatAm today, followed by the latest BCCh traders survey and Colombia February trade figures. In the G10, there are no notable data releases set for Friday, keeping focus on the central bank speaker slate. The Fed's Goolsbee will speak, followed by the ECB's Nagel.
  • USD – Markets underwent a significant volatility spike overnight on Friday, as news that Israel had launched missile strikes on Iran underpinned concerns of renewed geopolitical risk in the Middle-East. Risk sold off sharply, putting the USD on the front foot, equities lower and the JPY markedly higher. Emerging markets currencies came under particular pressure, with the MXN among the most exposed. The market impact didn't stick, however, with the missile strike appearing limited in nature and closer to a warning shot.
  • Global News:
    • ISRAEL / IRAN (MNI) – Israel and Iran have played down the significance of an overnight Israeli strike on a military facility near the Iranian city of Isfahan. It is unclear the extent of the damage, but the attack, whilst hitting targets within Iran, appears to fallen short of the worst-case scenario of a major strike of Iranian nuclear or energy infrastructure. The attack appears to have fulfilled a key strategic deterrent objective for Israel by demonstrating Israel can strike targets within Iran, but restraining from a major escalation.
    • COMMODITIES – Oil wiped out an earlier sharp jump as Iranian media appeared to downplay the impact of Israeli strikes that followed last weekend’s unprecedented bombardment by Tehran. Brent crude traded little changed near $87 a barrel after soaring more than 4% above $90 on renewed concerns over the potential for a wider conflict that could endanger oil supplies.
    • US (MNI) – Atlanta Fed Bostic said Thursday he’s comfortable keeping interest rates steady, reiterating it will not be appropriate to lower borrowing costs until toward the end of the year. "I don't think it will be appropriate to drop rates soon because if we drop rates there is a possibility that there's excess energy in the economy that puts upward pressure on prices and moves us even further from our target," he said.
    • EU – It’s still too early to declare that euro-area inflation has been vanquished, even if the ECB is on track to deliver a first interest-rate cut in June, Governing Council member Martins Kazaks said. The risk of stickier-than-expected price growth — something the US is experiencing at the moment — “is part of the game,” Kazaks said in an interview in Washington.