Last night China began the National Peoples Congress meetings (NPC) China makes it clear that they are targeting both growth and inflation and will tinker where they need to but the operative word is tinker.
There’s a change a foot for the U.S. dollar and like other major trend shifts in the direction of the “greenback”, this is not expected to be a short term move, nor has this change taken place overnight. The impact for commodities and emerging markets could be dramatic.
The EUR/USD is trading basically flat early into the U.S. first session of the week with the euro receiving a support after Spain’s government announced positive unemployment data of an increase of 59,400 compare to 77,500 last month.
China’s Shanghai Composite posted its worst move since November 2010 as the property index fell -9.3% and 90 stocks were limit down.
First outflow in 24 weeks would seem to be the headline but more importantly it should be why didn’t the 23 weeks in a row take emerging markets higher?
HSBC Flash PMI was disappointing but distorted by week long Chinese new year in February vs. January last year. Which means last month’s bullish numbers were not as good as judgment as well….
The Aussie dollar continues to be under pressure against the U.S. dollar at the start of the U.S. session after Federal Reserve’s policy meeting notes indicated the central bank is considering reducing its bond buying program sooner than originally stated.