🏛️PBoC announces new real estate market stimulus measures
The new week begins with a continuation of bullish sentiment in China on the back of a broad plan to cut interest rates and implement additional measures to help stimulate the economy. The indices there are extending their robust gains, with Shanghai indexes, among others, trading 7% higher today alone.
The People's Bank of China announced over the weekend that it will instruct banks to lower mortgage rates for existing home loans before October 31. In addition, the three tier cities of Guangzhou, Shanghai and Shenzhen have announced home buying facilities.
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Open account Try demo Download mobile app Download mobile appThe mood is extremely positive at the moment, but it should be remembered that all this is happening before the National Day holiday. As a result, Chinese markets will have a week-long break starting tomorrow. Domestic markets will not resume trading until October 8.
As a counterbalance to the good sentiment in China, the Caixin PMI data came out at 49.3 (previously 50.4) for manufacturing and 50.3 (previously 51.6) for the services reading. Also worth mentioning, the completely opposite sentiment is seen today in Japan, where the election of a new prime minister is creating concerns that he will be inclined to impose higher taxes on corporations and on capital gains in order to tighten monetary conditions in Japan.
The scale of the increases seen on CH50cash is the largest since June 2020 based on RSI. Source: xStation
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