Aug 18 2021 0
So what we have for today? US retail data. The NZD had a huge drop after 5 covid cases first appeared in 8 months. Moreover, US stocks just hit all time low. What a gloomy day! But it doesn't mean we can't make money from that. Let's buckle up and trade the market now.
- US retail sales data fell sharply and significantly below expectations.
- The New Zealand dollar (NZD) was the biggest loser in the G10 in the past session as the country identified its first COVID-19 case since February, which prompted the government to announce measures. new short-term blockade.
- The minutes of the policy meeting showed that the Reserve Bank of Australia (RBA), which surprised the market by stuck with its previous plan to reduce bond purchases, may be preparing more policy actions (easing ) if lockdowns across the country threaten to trigger an economic downturn.
- The European Union's statistics office (Eurostat) said on Tuesday that the eurozone economy grew by 2% in the second quarter, a demonstration that the easing of epidemic restrictions has boosted economic activity after a brief recession.
A safe route
The Biden administration said it had cleared the way for Americans traveling from the city to Kabul airport to evacuate Afghanistan, citing the Taliban's assurances that it would allow safe passage. About 11,000 Americans identify themselves as still in the country. Meanwhile, the United States has frozen nearly $9.5 billion in assets belonging to the central bank of Afghanistan and stopped shipping cash to the country as it tries to prevent the Taliban from accessing the money. In Qatar, there are signs that negotiations on forming a new government may accelerate. And the militant group said it would allow women to work in government roles under certain conditions.
Worst time for stocks
Asian stocks looked set to come under pressure after US stocks posted their worst drop in a month on fears that a resurgent coronavirus would affect the economic recovery. A measure of the rising dollar. Futures markets tumbled in Australia and Hong Kong, fluctuating in Japan. U.S. stock futures fell after the S&P 500 index halted a five-day rally and the tech-biased Nasdaq 100 index fell. US-listed Chinese shares fell again after Beijing stepped up its regulatory crackdown, with Alibaba, Baidu and JD.com among those suffering. Crude oil fell, pressured by a stronger dollar and uneven US recovery. Bitcoin has been trading below $45,000.
About the virus
New Zealand Prime Minister Jacinda Ardern has put the country on lockdown for 3 days after discovering 5 cases of Covid-19. Elsewhere, Hong Kong has increased hotel quarantine to at least two weeks for vaccinated people returning from most countries; The UK's drug regulator has approved Moderna's Covid-19 vaccine for children under 12 years old; U.S. health and transportation agencies are extending mask-wearing rules for airline passengers and other travelers through mid-January. Finally, where did Covid-19 come from? A study that has not been published for more than a year will shed light on the origin of the virus.
China may be entering a long battle to deal with the so-called "hidden debt" of local governments. An analysis of local government finances showed a difference of 668 billion yuan ($103 billion) between the number of refinanced bonds sold in the first half of the year to roll over maturing debt and the number of bonds be refunded. That means provinces and cities could have used some of the proceeds to pay off off-balance sheet debts, according to Robin Xing, chief China economist at Morgan Stanley in Hong Kong. In other Chinese news, Beijing's grip on ByteDance has tightened as a government-appointed director now sits on the board; and for a handful of hedge fund managers, the aftermath of Beijing's crackdown could feel like an earthquake.
Singapore plans to set up pilot programs to allow immunized business travelers from certain countries to enter on controlled journeys next month, as they are cautious about reopening. with international. Commerce Minister Gan Kim Yong told Bloomberg News in an interview on Tuesday, Singapore is in talks with Germany, Australia, Canada and South Korea to become the first group of countries to make such agreements, although although they are also considering the possibility of leisure travel. He said factors such as infection rates, vaccination rates and disease control will be considered in the discussions.