Feb 08 2021 0
Here are the latest updates on the forex market that all traders need to follow.
Beating Wall Street
China's army of small hedge funds is moving further than its more famous foreign rivals with outstanding returns helping them attract more assets. According to Shenzhen PaiPaiWang Investment & Management Company, nearly 15,000 funds provided by Chinese managers generated an average of 30% of profits last year, of which the best performing fund increased 10 times. That far outstripped the average 12% increase in hedge funds globally. The underperformance is another hurdle for global funds like Bridgewater Associates and Two Sigma, which have struggled to enter the 3.8 trillion yuan ($588 billion) hedge fund market of China since it was opened to foreign companies four years ago.
Asian stocks appear set for a quiet start after climbing to record highs last week, with investors watching for signs of progression on the coronavirus front and comments from Janet Yellen. promote US relief bill. Futures markets showed mixed starts for stocks in Japan, Hong Kong and Australia. The S&P 500 hit an all-time high on Friday, closing up nearly 5 percent for the week and 10-year Treasury yields closing at 1.16 percent. The Australian dollar fell slightly in early trading on Monday, with the greenback playing mixed with the G-10 silver.
Promoting the stimulus
Treasury Secretary Janet Yellen said the United States could return to full employment by 2022 if it enacted a stimulus to cope with coronavirus strong enough, but otherwise there would be a risk of slower recovery in employment and economy. health. Without adequate support, Yellen told CNN "State of the Union" that it may take until 2025 for the US labor market to recover. Yellen admits President Joe Biden's $1.9 trillion stimulus plan is not specifically aimed at creating jobs, but she said that "the spending it creates will create demand for workers. moving ”. That puts her at odds with former Treasury Secretary Larry Summers, who says Mr Biden's stimulus could be too large and comes with "huge risks", including inflation.
Loss of support
Hong Kong stock traders are preparing to find out if the $7.1 trillion market can hold itself in the absence of its largest inflow of capital. Starting Tuesday, trading links through Hong Kong's exchange operator allowing mainland traders to buy domestic stocks will be halted until Feb. 17 due to the Chinese New Year holiday. The closure of the stock coupling program, which will slow down to a record level of capital inflows, has helped propel the Hong Kong stock market to the best start in a year since 1985.
China released the official version of the rules aimed at eliminating monopolistic activities in the internet industry on Sunday. The rules will take effect immediately, according to a statement from the State Regulatory Authority of Market Regulations, the nation's antitrust watchdog. Regulations will limit anti-competitive practices like sharing of sensitive consumer data, forming alliances to eliminate smaller competitors and subsidize low-cost services to eliminate competitors, said the regulator.