Chinese government bonds rally after rate cut, Asian stocks decline, dollar weakens

From Yahoo Finance: 2024-07-21 21:54:00

Chinese government bonds rallied after the central bank cut key rates, boosting hopes for growth. The dollar dipped as Joe Biden exited the presidential race and backed Kamala Harris. China’s 10-year bond yield dropped 2 basis points, with futures setting record highs. Asian stocks took a hit, while US equities futures slightly rose.

The US dollar weakened, while Treasuries held steady. Mexican peso gained, gold rose, and Bitcoin hit a one-month high. Investors weighed election prospects after Biden’s exit, noting market upheaval may continue. Asian markets face high scrutiny as politics and earnings reports unfold this week.

The S&P 500 slid 0.7%, led by tech stocks. CrowdStrike fell 15%. Tesla and Alphabet report earnings this week, focusing on robotaxis and AI revenue boosts. Meanwhile, China unveiled plans to support local governments financially, impacting yuan and commodity markets. Economic data from Europe and the US will also shape trading.

Chinese banks cut rates to back economic growth post-PBOC move. Market focus shifts to European and US data, BoC rate decision, Fed’s inflation measure, and corporate earnings reports. A flurry of global economic events and key data releases await traders across various sectors. Stocks and currencies see mixed performance.



Read more at Yahoo Finance: Chinese Bonds Climb on Rate Cut, Asian Stocks Fall: Markets Wrap