Jun 22 2020 0
It's Monday. That means it's time for you to get updated with the most important financial news around the world in order to find the most suitable forex trading strategies.
As central banks inject trillions into the world economy, investors will consider the next big potential move in global monetary policy: controlling the yield curve. The strategy, which includes buying bonds to reduce yields for certain maturities to a specific goal, once considered an extreme and extraordinary measure, was only developed by the Bank of Japan (BoJ) four years ago, after it was clear that the two-decade deflationary spiral had not ended.
This year, however, the Reserve Bank of Australia (RBA) has adopted a similar version for itself. And despite the officials' efforts to ease policy, there is speculation that the Federal Reserve and the Bank of England (BoE) will follow this policy later this year. If the policy of controlling the yield curve takes place globally, it will reinforce market awareness that the central bank is the ultimate buyer, promoting risk appetite, reducing volatility and increasing hunting. seek wider interest. Although monetary regulators warn that such an environment could spur reckless investment actions triggered by a flood of fiscal and monetary stimulus, they still see benefits. spread on credit markets, stocks, gold and emerging markets.
Tighten the grip
China has confirmed that a proposed national security law would allow Beijing to overwhelm Hong Kong's independent legal system. This further clarifies a move that tensions with the United States and threatens Hong Kong's leading financial center position. In the proposal, the central government would have jurisdiction over an "extremely small" number of national security cases in "specific situations". In addition, China will set up a new office in Hong Kong to analyze the security situation, collect intelligence and "legally handle national security cases". The bill also calls on Hong Kong to set up a new committee to protect national security, which will be monitored and accountable to Beijing. The executive director will oversee the committee, as well as appoint judges to handle criminal cases brought under the law.
Market on Monday
The Australian and New Zealand dollars slipped as the trading week began, with investors moving to watch for signs of coronavirus outbreaks in several major US states. The yen climbed at the beginning of the session. The US futures market was lower at the beginning of the Asian session after the S&P 500 index dropped at the end of last week. Oil price reduction. The market remains vulnerable as governments gradually reduce their blockade of coronavirus and restrict travel to revive economic growth, while trying to control the spread of Covid-19. Global stocks are up about 37% higher than March’s lows.
Re-outbreak in Beijing
China has suspended poultry imports from a Tyson Food factory, where hundreds of employees tested positive for Covid-19, raising concerns about the bigger impacts on meat exports of US and the world. The suspension announced on Sunday was a change of stance compared to just a few days ago, when Chinese officials said food was unlikely to cause a new virus outbreak in Beijing. The move is a new potential threat to meat factories around the world, having seen disruptions in virus slaughtering.
Recently, viral infections have also increased in Brazil and Germany. If China continues to suspend shipments based on coronavirus infections reported at processing plants, it could also threaten to weaken promised farm purchases as part of the deal. trade between Washington - Beijing. Meanwhile, the number of new virus infections in California has increased a record and the rate of spread in Florida has risen above the weekly average. Overall, the number of coronavirus infections in the United States has increased by 1.2%.