Home > Oct 2017 > Oct 19, 2017 Stock Market All Time High, China GDP misses Whisper Number

Oct 19, 2017 Stock Market All Time High, China GDP misses Whisper Number

October 19th, 2017

Tonight China GDP came inline with estimates at 6.8%, yet the whisper number was 7%. Shanghai Futures had copper down again on the second day of the China Congress. Futures down .20% in the first hour of the European Session. New Zealand had an announcement of a new prime minister which caused the Kiwi to sell off more then 1% against pairs including the USD.  PBoC Gov announced that he will be stepping down soon, maybe March. He also expressed concern over leverage. Markets seem to be focusing in on earnings of specific stocks, this was not seen during all the Central Bank Years flooding the Global Markets. Also, Catalan President Carles Puigdemont said that parliament may declare independence from Spain unless the government talks with them.

Oct 2017

  • Trading_Nymph

    From New Zealand Herald..News of New Zealand’s new government, led by Jacinda Ardern, hit the northern hemisphere in the early morning.

    The Guardian had live news coverage of the election today and reported from the “eagerly awaiting press conference” the news that NZ First was choosing to go into coalition with the Labour Party.

    A profile on Ardern published in The Guardian highlights her past as a former Mormon, as well as the fact that she has a cat, likes to DJ, and does not drink coffee.

    “After an agonising day of waiting Peters announced he would support Labour because the global environment was undergoing rapid and seismic change, and he believed a Labour government was best-placed to handle the social and economic welfare of New Zealanders,” The Guardian reported.

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    In the US, CNN wrote that Peters decision marks the end of “almost a month of uncertainty, and weeks of negotiations”.

    “Speaking to reporters at the New Zealand Parliament, known as the Beehive, Peters was scant on details about the agreement with Ardern’s party, but hinted he could become deputy prime minister,” the network wrote.

    Across the Tasman, The Australian also reported on the new government, explaining that negotiations on ministerial portfolios are yet to be concluded.

    News.com.au called it an “election shock” on its homepage. “Ms Ardern learnt of her success the same time as other Kiwis – as the dramatic announcement was made on live television.”

    The New York Times called it a “combative” election.

    “Her ascension represents a remarkable rise for a woman who just months ago became Labour’s youngest leader ever, setting off ‘Jacindamania’ among the party’s followers. Unconventional and described by colleagues as intensely focused, she has defied the norms of New Zealand politics, refusing to be pinned down on whether she has considered having children, saying no male politician would be forced to answer that question.”

    Bloomberg points out that Labour is back into the Beehive for the first time in nine years and calls it a “stunning rise” for Ardern.

    The BBC refers to the “end of a stalemate” in New Zealand and says the coalition will also be supported by the Green Party.

    Deutsche Welle says the announcement today ends a month of coalition wrangling “but raises questions about the new government’s policies”

  • Trading_Nymph

    From Financial Review… Chinese regulators have signalled a tougher stance on the country’s finance sector as Beijing moves to lower overall debt levels, manage risks in shadow banking and prevent property speculation.

    People’s Bank of China Governor Zhou Xiaochuan, who is due to retire soon, told a meeting of top finance officials at the National Party Congress on Thursday that corporate debt levels were too high. He said household debt, while not high by global standards, had risen rapidly in recent years.

    One of his potential successors, Guo Shuqing, who is currently head of China’s banking regulator, warned at the meeting: “Supervision of the finance sector will become more and more strict.” He said local government finance, lending to the property sector and inter-bank lending were the main targets.

    Mr Guo also said at the meeting that China’s banking sector should be more open to foreign capital.

    “In the past five years, foreign investment in China’s banking sector has fallen,” he said. “This is not good for competition.”

    Mr Guo said there should be “more room” for foreign banks to increase their shareholdings in Chinese banks. Currently, they are limited to holding stakes of up to 20 per cent in local players. China’s delay in lifting ownership restrictions contributed to ANZ’s decision to sell out of its local investments in the past few years.

    The delegation of China’s top finance officials held a meeting in Beijing’s Great Hall of the People to discuss President Xi Jinping’s report to the National Congress. Mr Xi delivered the report in 31/2-hour long speech on Wednesday, during which he pledged to reduce leverage and insisted “houses are built to be lived in, not for speculation.”

    Mr Guo, chairman of the China Banking Regulatory Commission, said lending to the property sector would be “more tightly controlled”.

    China’s high debt levels are seen as one of the biggest risks to its economy. Last month, Standard & Poor’s cut the country’s sovereign rating for the first time since 1999, citing a prolonged period of credit growth that had contributed to a strong economy but diminished financial stability.

    There are also concerns that economic reform has stalled in China. Asked on Thursday about the prospect for further exchange rate reform, the PBOC’s Mr Zhou said widening the trading band for the yuan was “not a current focus”.

    China’s central bank sets the reference rate for the yuan every day and allows it to trade plus or minus 2 per cent from that mid-point. There has been speculation the PBOC was considering widening the band further. In an interview with financial magazine Caijing earlier this month, Mr Zhou said: “No country can achieve an open economy with strict foreign exchange controls.”

    He also said “time windows are very important for reforms and must be seized” or the cost of reform would be higher in the future.

    The comments fuelled speculation of imminent reforms. However Mr Zhou appeared to backtrack from the interview at the meeting on the sidelines of the Party Congress.

    He said exchange rate reform was “a long process”.

    “We’ve made a lot of progress and we will continue this process,” he said.

    Mr Zhou, who at 69 is beyond the party’s retirement age for senior officials, is expected to retire soon. He is the world’s longest-serving central bank chief.

  • Trading_Nymph

    Panther it is sort of strange how so many are focused on Micro Analysis of specific stocks. Something that has been missing for a long time.

  • panther341

    OPEC thinks oil demand going up. forever. They didn’t buy the story about electric cars and whatever in China I guess. http://www.marketwatch.com/story/oil-demand-to-top-100-million-barrels-a-day-in-2020-opecs-barkindo-says-2017-10-19

  • Trading_Nymph

    That is what they are hoping for…they miss 2008 lol