China Opening Up Its Financial Market Access, US Inflation Data And Fed Protocol Next
The stock market sentiment remains resilient. DOW rose 1.79%. S&P 500% is up 1.67%. NASDAQ increased 2.07%. Hong Kong HSI rose 0.75% on the news concerning China opening its financial market. Nikkei, on the other hand, dropped -0.3%.
In the Boao Forum for Asian in China, Yi Gang (New People’s Bank of China Governor) stated that China will open up its financial market access. The government will reclaim foreign ownership caps on Chinese banks by the end of June. Foreign securities and life insurance firms will be able to hold majority stakes in the country, thus the ownership could increase from 49% to 51%. The restriction will be removed within 3 years. The permitted business scope for foreign insurance agents will be raised. The daily quota for foreign investors to buy Chinese stocks and for Chinese investors to buy Hong Kong traded stocks will be quadrupled. China will also set a trading link between Shanghai stock markets to London’s by the end of this year. New People’s Bank of China Governor also promised that Yuan won’t be devaluated.
Loonie, Aussie and Kiwi stay the firmest currencies of this week while the greenback and Japanese Yen are the weakest. Today’s highlight is US inflation data, including Headline Consumer Price Index and Core Consumer Price Index. Additionally, Fed will release the protocol of its March policy meeting. Investors are hoping to get some information about the number of rate hikes this year. So far, Fed prognosis suggests 3 hikes, but some members insist there would be 4. Fed fund futures are pricing in 95% odds for a rate lift of 25 basis points in June.
The Confederation of British Industry issued a report, which indicated that British companies would rather stay in EU rules after the Brexit is over. CBI Director-General Carolyn Fairbairn told that for the majority of firms, “diverging from EU rules and regulations will make them less globally competitive, and so should only be done where the evidence is clear that the benefits outweigh the costs.” She added that the report shows “unparalleled evidence to inform good decisions that will protect jobs, investment and living standards across the UK.”
Japanese machine orders grew 2.1% mom in February. Japan Domestic CGPI increased 2.1% yoy in prior month. Australian Westpac consumer confidence fell -0.6% this month. Chinese Consumer Price Index reduced from 2.9% to 2.1% yoy. Purchasing Price Index declined from 3.7% to 3.1% yoy. Today, Britain will release industrial production, manufacturing production and trade balance. US will announce Consumer Price Index and FOMC protocol.