False Hope: Hubei Experience Suggests EU and US may Need to Extend Lockdowns

On Monday, we observe moderately upbeat sentiments in Asian and European stock markets backed by hopes that Saudi Arabia and Russia will still be able to “make peace” despite Trump’s weekend U-turn and abrupt decline in new cases of Covid-19 infection: The VIX volatility index, which is now a useful measure of general virus-related level […]

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PBOC Extends Easing Measures in Order to Shore up Ailing Economy

The Central Bank of China decided to lower reserve requirement ratio for small and medium-sized commercial banks unlocking about 400 billion yuan ($ 56.38 billion) of liquidity to shore up the economy damaged by costly lockdowns. The People’s Bank of China said on its website that it would reduce the required reserve ratio for banks […]

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Investors Eye Unemployment Claims as the key Proxy of Stress of the US economy

Oil Today we’ve seen relatively robust upward swing in oil as the market did not wait for negative news but were offered solid support thanks to a number of positive catalysts, including: Rumors that China has started to fill strategic reserves taking advantage of the low oil price. The volume, duration, speed of purchases was […]

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Is The US About To Lift China Trade Tariffs?

Trump Considering Lifting Tariffs With the growing economic threat from COVID-19 demanding an increasing response from central banks and governments alike, the US administration is reportedly on the verge of a surprising U -turn. According to the Financial Times, the President is set to announce a 90-day suspension on some Chinese imports such as apparel […]

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Pressure Mounts on UK PM To Extend Transition Phase Deadline

EU/UK Trade Talks Fall From Spotlight With the COVID-19 crisis raging, the trade negotiations between the EU and the UK have understandably taken a back seat in terms of urgency. With the talks due to have started in February, but so far only seeing the initial statements from both sets of leaders, there are questions […]

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Here is the Reason not to Trust Current Production PMIs

Asian PMIs in manufacturing sector collapsed in tandem in March, and only China manufacturing sector looked out of place with a sharp rebound: Mainstream media attributed mini downturn in Asian and European stocks today with disappointment related to Asian production activity negative surprise. This is a good attempt though, but I think that the situation […]

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