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23 Jan 2015
ECB QE announcement sends Shanghai Composite to fresh 5-year highs – TradeTheNews
FXStreet (Barcelona) - The TradeTheNews Team shares that the upbeat sentiments in European and US markets due to the ECB was reflected in China, with the Shanghai Composite Index making fresh 5-year highs above 3,400.
Key Quotes
“Upbeat sentiment permeating European and US markets in the wake of a more meaningful ECB QE announcement than anticipated has fed through to Asia, where China is leading the way. Returning for trade in the afternoon session, Shanghai Composite has made fresh 5-year highs above 3,400, and the rally in Hong Kong is nearly as impressive.”
“China flash HSBC manufacturing PMI portends a contraction for the 2nd straight month but just barely, coming in 3 ticks above consensus and 2 ticks away from the the expansion threshold. HSBC economist noted marginal improvement in domestic demand, but still saw labor market sufficiently weak, recommending further monetary easing. To that end, PBoC said it would maintain prudent monetary policy through timely fine-tuning only a day after its first reverse repo operation at lower offering yield in nearly a year.”
“Separately, China Academy of Sciences forecasted 2015 GDP at 7.2%, down from 7.4% in 2014, even though trade surplus was expected to improve.”
Key Quotes
“Upbeat sentiment permeating European and US markets in the wake of a more meaningful ECB QE announcement than anticipated has fed through to Asia, where China is leading the way. Returning for trade in the afternoon session, Shanghai Composite has made fresh 5-year highs above 3,400, and the rally in Hong Kong is nearly as impressive.”
“China flash HSBC manufacturing PMI portends a contraction for the 2nd straight month but just barely, coming in 3 ticks above consensus and 2 ticks away from the the expansion threshold. HSBC economist noted marginal improvement in domestic demand, but still saw labor market sufficiently weak, recommending further monetary easing. To that end, PBoC said it would maintain prudent monetary policy through timely fine-tuning only a day after its first reverse repo operation at lower offering yield in nearly a year.”
“Separately, China Academy of Sciences forecasted 2015 GDP at 7.2%, down from 7.4% in 2014, even though trade surplus was expected to improve.”