NFLX up / Trump cruises to victory in NH, markets taking note / China cuts RRR by 50bps, #HSI #HXC

Stéphan

Jan 24, 20243 min read

China to unveil steps to deepen financial cooperation with Hong Kong - BBG >>> could they force HKMA to get closer to PBOC policies ? definitely worth keeping an eye on ! #HKD
China : The 0.5% RRR cut will release RMB1 trillion in liquidity. PBoC Governor Pan Gongsheng mentioned support to property developers' cashflows during the PBoC press conference
Trump cruises to New Hampshire win >>> Trump will push protectionist ideas, he likes debt, so rates up and USD up, markets could start early to price in a Trump presidency
The Turkish parliament voted Tuesday to approve Sweden’s NATO membership bid, bringing the Nordic country one step closer to joining
US asks China to urge Iran to curb Red Sea attacks by Houthis -FT
Japanese exports hit record in 2023 (..super weak currency) >>> watch JGB's, which are a little bit on the move again this morning, supporting JPY
Saxo report -Silver and copper in focus after recent declines
Sweden inches toward NATO
"The Fed put may be back. The Fed put exists when the market expects a rapid monetary policy response to any sign of economic weakness, but it has never, in our view, reflected any true love of the Fed for equities and other risky assets:" Standard Chartered's Steve Englander
French business activity falls at steepest pace in four months - PMI, while in Germany, we got the lowest output price inflation in 3 years!.. >>> Mme Lagarde will soon have to change her tune...and cut rates perhaps quicker than many think, the bit of good news though is that growth (ex France and Germany) has returned within EU after nearly 6months of decline

Markets :

Contrarians will like what they see in Chinese markets, Nasdaq Golde Dragon index #HXC and #HSI all in play, China50 etc
FXland fairly quiet, though USDJPY doesn't seem to like life 148+, keep an eye on JGB's, which are selling off a little again this morning, supporting JPY
Equity markets love pretty much everything that they see! new highs in few places again, Netflix beat after hours too
Copper, Crude, few commods a little firmer overall

China snowball knock-ins fuel futures sell-off  - Risk.net

Re-hedging of China’s popular snowball structured products in the futures market is said to have contributed to the ongoing rout in the country’s equity markets, according to market participants.....many of these structures, the clients lost all/most of the capital >>> huge pain taken by markets >>> time for a contrarian trade!!

China Slams EU’s ‘Unfair’ Electric Vehicle Probe - Bloomberg

PBOC Will Cut RRR for Banks in Early February, Governor Says (yahoo.com )

China to double down on support for Hong Kong as nation’s international financial hub for bonds, green finance, minister says at AFF | South China Morning Post (scmp.com )

Michael Pettis on X: "1/2 The 26 Chinese provinces and municipalities that have reported GDP growth targets so far this year represent nearly 90% of China's GDP. By my calculation, the weighted average GDP growth target for these 26 provinces and municipalities is 5.2%. https://t.co/O1fJAgWgpV " / X (twitter.com )

French business activity falls at steepest pace in four months - PMI (yahoo.com )

Sweden got one step closer to joining NATO (qz.com )

Germany's far-right AfD could face legal challenges (msn.com )

Silver and copper in focus after recent declines | Saxo Group (home.saxo )

Markets could start to price in a Trump presidency | Saxo Group (home.saxo )

Trump defeats Haley in New Hampshire GOP primary (cnn.com )

Japanese exports hit record in 2023 on weak yen - Nikkei Asia

Netflix Stock Jumps 8% as Paid Sharing, Pricing Changes Drive Q4 Revenue Beat (msn.com )