Peoples Bank of China

Broadly Softer Dollar amid More Hopeful Investor Mood

May 26, 2020

The evolution of the Covid-19 pandemic remains highly uncertain, but investors have chosen hope over fear at least for a day or so. Economies are being reopened at varying speeds, and there has been some encouraging news regarding vaccine development. Released economic data have confirmed improvement in many cases, meaning a slower implosion rather than […] More

Disturbing News on Market, Economic, Medical and Social Fronts

April 20, 2020

The price of West Texas Intermediate crude oil collapsed under the weight of exhausted storage capacity and plunging demand. At its overnight low of $11.04 per barrel, the price was down 39% on the day and by more than 80% from its 52-week high. It’s also the lowest since the first quarter of 1999 during […] More

Pessimism Gaining Upper Hand in Financial Marketplace

April 15, 2020

Projected contractions in real GDP this year embodied in the IMF’s World Economic Outlook would make this the weakest calendar year economic performance since the early 1930s. The Washington-based group foresees activity falling by 3.0% in the world, 5.9% in the United States, 7.5% in Euroland, 6.5% in the U.K., 6.2% in Canada, and 5.2% […] More

Prime Loan Rate Cut in China

February 20, 2020

In response to the coronavirus outbreak in China that slammed economic activity, the central bank there cut its 5-year prime loan rate by five basis points to 4.75% and its one-year prime loan rate by 10 bps to 4.05%. The one year LPR had not been changed since a 5-basis point reduction in November and […] More

Solid Day for the Dollar But Stocks Struggle in Several Markets

February 20, 2020

The euro slid overnight to a 1-year low of $1.0777, and the dollar also hit a 42-week high against the yen of 112.18 and to close to an 11-year peak of 0.6617 per Australian dollar. Sterling fell to $1.2849, a quarterly low, and the yuan weakened 0.4% and past the 7.000 per dollar threshold. The […] More

China’s Central Bank to the Rescue

February 4, 2020

Stock markets around the world rebounded sharply after the People’s Bank of China ease its monetary stance to counter the growth impact of the coronavirus epidemic, where cases now exceed 20k and include over 425 deaths. The PBOC on Monday reverse repo rates by 10 basis points and injected CNY 1.2 trillion of liquidity. That […] More

Dollar Drops Additionally, and Stock Markets Down Too

December 30, 2019

The dollar slid overnight by a further 0.3% against the yen, sterling, Swiss franc and Australian and New Zealand dollars. The dollar also fell 0.2% against the euro and by 0.1% relative to the yuan and loonie. This extends the losses before the weekend on Thursday and Friday. Stock markets in the Pacific Rim weakened […] More

Firmer Yen

January 9, 2018

The Japanese yen advanced 0.4% overnight against the dollar and by even more versus main European currencies. Investors reacted after the Bank of Japan bought fewer 10-year and longer JGBs in its operations today, which kindled suspicion the quantitative stimulus may be throttled back in 2018. The Japanese Nikkei-225 share price index climbed 0.6%, but […] More

Chinese Central Bank Reserve Requirement Cut on Leap Year Day

February 29, 2016

The People’s Bank of China lopped another 50 basis points off its deposit reserve requirement ratio to 17.0%.  Five reductions in 2015 had reduced such to 17.5% from 20.0%, but the fifth of these was done five months ago in late October.  This kind of stimulus risks exposing the yuan to greater selling pressure. The […] More

Three Shocks Slam Global Financial Markets

December 11, 2015

Stocks are plunging and the 10-year Treasury yield fell seven basis points today in response to three developments. Oil prices fell 1.2% to $36.33 per barrel. ┬áCommodities were hit by a projection from the International Energy Agency that the global oil surplus will persist for another year. China’s central bank website announced plans for the […] More

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