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China warns of uncertainty after GDP release

HEADLINES

 

 

  • China warns of economic uncertainty despite moderate recovery in Q2
  • Dollar declines as Fed's Powell maintains dovish message
  • Pound-Euro Rate Rallies to April Highs on Inflation Data, but Gains Could Fade
  • Oil Drops as U.S. Fuel Stocks Grow and OPEC+ Nears Deal
  • Gold, silver get a lift as Fed's Powell leans easy on money policy
  • Shares in Asia-Pacific mixed as China reports its economy grew in the second quarter
  • AMC share price gets cut in half as reality sets in for meme stock investors
  • Fed Chair says stablecoins need stricter regulation, speaks on CBDC

 

 

MACRO

 

 

China warns of economic uncertainty despite moderate recovery in Q2

 

The pace of China’s economic recovery rose modestly in the second quarter after signs of sluggishness in the world’s second-biggest economy stoked expectations of greater policy support.

On a quarter-on-quarter basis, China’s gross domestic product expanded 1.3 per cent in the three months to the end of June, up from a 0.4 per cent expansion in the previous quarter, the National Bureau of Statistics said on Thursday. Economists had predicted quarter-on-quarter growth of 1 to 1.2 per cent, according to polls by Bloomberg and Reuters.

Meanwhile, retail sales in June jumped 12.1% from a year earlier, data from the National Bureau of Statistics showed — above analyst expectations for a 11% increase, according to Reuters.

Chinese industrial output rose 8.3% year-on-year in June, against expectations by analysts in a Reuters poll for a 7.8% increase.

 

 

FOREX

 

 

Dollar declines as Fed's Powell maintains dovish message

 

The dollar pared recent gains on Wednesday after Federal Reserve Chair Jerome Powell told Congress the U.S. economy was "still a ways off" from levels the central bank wanted to see before tapering its monetary support.

 

Pound-Euro Rate Rallies to April Highs on Inflation Data, but Gains Could Fade

 

The British Pound was bid in mid-week trade following the release of UK inflation data for June which came in hotter than expected, prompting expectations that a 2022 Bank of England interest rate rise was increasingly likely.

According to the ONS, CPI inflation rose 2.5% year-on-year in June, which is greater than the 2.2% forecast by the market and the 2.1% reported in May.

 

 

COMMODITIES

 

 

Oil Drops as U.S. Fuel Stocks Grow and OPEC+ Nears Deal

 

Oil’s rally fizzled as a build in U.S. fuel inventories and a potential OPEC+ agreement to increase supply cooled a buying spree that had pushed the market above $75.

Futures in New York fell 2.8%, the most since May. Both gasoline and distillate inventories rose last week, according to a U.S. government report. Meanwhile, Saudi Arabia and the United Arab Emirates were said to resolve the standoff that has prevented OPEC+ from satisfying growing demand for extra barrels.

 

Gold, silver get a lift as Fed's Powell leans easy on money policy

 

Gold and silver prices are higher in midday U.S. trading Wednesday, with gold notching a three-week high. The market place focus at mid-week is on Federal Reserve Chairman Jerome Powell’s testimony to a House of Representatives committee today on U.S. monetary policy and the economy. Powell leaned a bit dovish on U.S. monetary policy by saying the Fed is still a ways off on tapering its bond-buying program (quantitative easing) and reiterated that rising inflation pressures are likely only transitory. 

 

 

STOCKS

 

 

Shares in Asia-Pacific mixed as China reports its economy grew in the second quarter

 

Shares in Asia-Pacific were mixed in Thursday trade as China reported its second-quarter gross domestic product (GDP) grew. Mainland Chinese stocks were mixed in morning trade. The Shanghai composite rose 0.26% while the Shenzhen component fell 0.26%. Hong Kong’s Hang Seng index gained 1.33%.

 

AMC share price gets cut in half as reality sets in for meme stock investors

 

The price of AMC Entertainment stock has been cut in half from its peak amid a big rout in meme stocks this month as the reality of bubble-like rallies and failing businesses started to become apparent for Reddit-obsessed investors. The movie theater chain’s stock tumbled 15% to $33.43 apiece on Wednesday, less than half of its all-time high of $72.62 in early June. The decline brought its month-to-date losses to 41%

 

 

CRYPTO

 

 

Fed Chair says stablecoins need stricter regulation, speaks on CBDC

 

Fed Chairman Jerome Powell told the House of Representatives today that stablecoins should face stricter regulations similar to money market funds or bank deposits. Powell was asked specifically about Tether, currently the most valuable stablecoin, by Rep. Anthony Gonzalez (R-OH). Tether claimed each coin was backed by a dollar, but that has been proven false; rather it is backed mostly by commercial paper or debts.

 

 

CHART

 

 

Germany DAX 30 index – Daily Candlesticks

Source: GKFX Prime Metatrader 4

Dax 30 is testing resistance of a short-term horizontal range that fits within a larger uptrend. A break above resistance would confirm the next leg of the uptrend is about to start, while a break below the bottom of the range would imply a larger correction. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

SOURCE

https://www.fxstreet.com/economic-calendar
https://www.ft.com/content/484f019c-8179-49d9-b23a-2885b8aeaf47
https://www.cnbc.com/2021/07/14/amc-share-price-cut-in-half-as-reality-sets-in-for-meme-stock-investors.html
https://www.cnbc.com/2021/07/15/asia-markets-china-economy-australia-jobs-data-for-june-currencies-oil.html
https://in.investing.com/news/oil-drops-as-us-fuel-stocks-grow-and-opec-nears-deal-2801991
https://www.kitco.com/news/2021-07-14/Gold-silver-get-a-lift-as-Fed-s-Powell-leans-easy-on-money-policy.html
https://cointelegraph.com/news/fed-chair-says-stablecoins-need-stricter-regulation-speaks-on-cbdc

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