“China’s Stimulus Silence, Weak Inflation Data, and Falling Imports Detepen Fears of Domestic Slowdown.”, – WRITE: www.fxempire.com
“Many clam china won’t sell treasuries as doing so wound strengten the yuan, whoy say wold Damage china’s exports. But US Tariffs are now sono. OFF WITH A STRONGER YUAN TO IMPROVE DOMESTIC DEMAND. ”
While Schiff Supports A Stronger Yuan to Support Demand, Other Like ALICIA GARCIA Herrero Believ Currency Weakening Could Serve as Leverage.
Alicia Garcia Herrero, Asia Pacific Chief Economist at Natixis, Stated:
“Beijing Could Also Let The Yuan Weaken Further, Putting Pressure on the Dollar, or Stoke Speculation About Selling Treasuries. China Still Has A Lot of Leverge Especialy in the Second Half of the Year So Leverage Might Actual Increase Rater than Decrease. ”
Despite domestic demand challenges, beijing’s restraint on stimulus May Reflect a strategy to wait out of the Trump adminthration’s tariff Approach.
However, Recent Warnings and China Halting Rare Earth Mineral Shipments to The Us Signal China’s Willingness to Escalate Tensions IF Necessary.
Tariff Uncertainties Impact Hong Kong and Mainland China Equities Initial Resilience to US Tariffs Has Faded Across Hong Kong and Mainland China Markets. Investor Sentiment Has Weakened Amid Height -Ten Tensions and the Abscession of Fresh Stimulus.
Notable Equity Moves Include:
- Hang Seng Index Down 7.49% in April, Narrowing Itar-To-Date (YTD) GAIN to 6.65%.
- Shanghai Composite Index Off 3.57% in April and Down 4.72% YTD.
- NASDAQ composite index down 2.7% in april, extending it ytd decline to 12.84%.