- Asian stocks rallied on Tuesday, led by Chinese markets, following Beijing's announcement of broad monetary stimulus and property market support measures. China's CSI 300 and Shanghai Composite indexes surged over 3.5%, while Hong Kong's Hang Seng index jumped more than 3.7%.
- The People's Bank of China unveiled a comprehensive package of stimulus measures, including a 50 basis point cut to banks' reserve requirement ratio (RRR), which is expected to free up about 1 trillion yuan ($142 billion) for new lending. The central bank also signaled potential further RRR cuts later this year.
- Additional measures announced include lowering key interest rates, reducing mortgage rates for existing loans, and easing down payment requirements for second-home buyers. The PBOC also introduced new tools to boost capital markets and support stock purchases.
- Japan's Nikkei 225 rose 0.6%, while the broader TOPIX added 0.5%. PMI data showed Japan's services sector grew more than expected in September, although manufacturing activity continued to contract.
- Australia's ASX 200 fell 0.2%, trimming earlier losses after the Reserve Bank of Australia kept interest rates unchanged at 4.35% as expected. The RBA maintained a hawkish stance, stating that inflation remains too high and that it's not ruling out further measures to curb price pressures.
- The Australian dollar strengthened slightly following the RBA decision, with the AUDUSD pair rising 0.2% and approaching a 2024 peak.
- Oil prices increased on Tuesday, with Brent crude futures up 0.93% at $73.92 a barrel and WTI crude futures rising 1.05% to $71.11. The gains were attributed to China's stimulus measures and ongoing tensions in the Middle East.
- The Chinese yuan firmed against the dollar, with USDCNY falling 0.2% to its lowest level since May 2023. The offshore yuan (USDCNH) also hit a 16-month low.
- In corporate news, Boeing made a "best and final" pay offer to thousands of striking workers, but the International Association of Machinists and Aerospace Workers declined to put it to a vote, citing insufficient improvements in key areas.
- U.S. stock futures retreated in Asian trade, suggesting that the recent rally on Wall Street may be stalling. Investors remain focused on upcoming U.S. inflation data and further cues from the Federal Reserve following last week's rate cut.
- EURUSD is flat, silver is up 1.4% and gold is gaining 0.4% currently setting new all-time-high. Cryptocurrency market is lower after green day yesterday; currently Bitcoin is down 0.4% today and Ethereum is trading almost 1% lower.
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
