by Tyler Durden
Thursday, Apr 15, 2021 - 10:17 AM
The ongoing decline in China s credit impulse, which we have discussed extensively here in recent weeks, just made its latest appearance and the market was not happy.
Chinese stocks fell on Thursday, after the central bank underscored its intention to
contain leverage and pursue policy normalization by adding just enough cash to maintain medium-term liquidity.
On Thursday, the PBOC injected 150 billion yuan ($23 billion) into the financial system on Thursday with its medium-term lending facility. That was slightly less than the medium-term lending facilities due in April even as liquidity is set to tighten this month, with 100 billion yuan due and 56.1 billion yuan of targeted loans maturing on April 25.
PBOC’s Cash Injection Disappoints Stock Traders Wanting More
Bloomberg 3 hrs ago Bloomberg News
(Bloomberg) The People’s Bank of China signaled its intention to contain rising leverage by adding just enough cash to maintain medium-term liquidity. Stocks fell as expectations that the central bank would loosen its purse string were dashed.
The PBOC injected 150 billion yuan ($23 billion) into the financial system on Thursday with its medium-term lending facility. That more-or-less matches the 100 billion yuan due and 56.1 billion yuan of targeted loans maturing on April 25.
While money markets barely reacted, the decline in stocks showed how equity traders are struggling to come to terms with plans by Chinese policy makers to gradually wind back pandemic-fueled stimulus. The test for the economy will come in the weeks ahead as banks need to help corporate clients pay taxes, and as sales of government bonds are forecast to accelerate.
by Tyler Durden
Monday, Apr 12, 2021 - 07:50 AM
Global stock markets and US equity index futures dipped modestly with shares in Europe and Asia as traders weighed inflation risks, an uneven global recovery and the latest upbeat economic outlook from Washington. After sprinting to close at an all time high on optimism that vaccination programs and the easing of lockdowns to combat COVID-19 would bode well for an economic rebound, S&P 500 futures were cautious to start the new week as investors waited to see whether U.S. earnings would justify sky-high valuations, while a rally in bonds could be tested by what should be strong readings for U.S. inflation and another round of blockbuster retail sales this week.