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China has taken bold measures to uplift its struggling property sector by implementing its most substantial reduction in a key mortgage rate to date. The five-year loan prime rate saw a notable cut of 25 basis points, plummeting to a historic low of 3.95%. This move, the largest decrease since the rate's overhaul in 2019, underscores China's commitment to stimulating economic growth through targeted measures. The decision to lower the mortgage reference rate is poised to have far-reaching effects, potentially unlocking opportunities for further economic support initiatives. By enabling more cities to lower their minimum mortgage rates, the rate cut aims to revitalize demand in the sluggish housing market. Moreover, it seeks to address the persistent property crisis, which has cast a shadow on overall economic growth. However, despite these efforts, it is not expected that the rate cut will significantly boost homebuyers' sentiment as home prices are still falling in most cities and wage growth is tepid. Following cut's announcement, market response was subdued, with equities and USDCNH experiencing minimal changes, while 10Y onshore government bond yields saw only slight decreases. How will China emerge from this slow economic agony? Source: Bloomberg

Source: Seek Wiser

"The math isn't complicated. When the share count goes down, your interest in the businesses goes up. Every small bit helps if repurchases are made at value-accretive prices". Source: Koyfin Charts

Americans shopping online after midnight often make riskier transactions and are more likely to default on their loans, according to Affirm. The fintech firm uses the hour a consumer attempts a transaction as a key data point to help determine whether to approve loans. Other factors include a user’s repayment history with Affirm and transaction data from credit bureau Experian. “Human beings don’t make the best decisions at two o’clock in the morning,” Affirm said. “It’s clear as day — credit delinquencies spike right around 2 a.m.” While the data is clear that late-night financial decisions are riskier, the reasons for it are less so. source: cnbc, affirm

Goldman now sees the S&P 500 rising to 5,200 by the end of this year, raising his forecast by about 2% from the 5,100 level he predicted in mid-December. The new target implies a 3.9% jump from Friday’s close. Goldman’s 5,200 price target for the S&P 500 in 2024 is now among the highest on Wall Street, joining the ranks of Wall Street bulls. source : gs

One of these companies sells chips that power the world and the other sells sweatshirts to teenagers and young adults. source : kofin, tme

source : gs, tme

U.S. markets are closed Tomorrow, Monday, Feb. 19, in observance of Presidents Day. The NYSE, Nasdaq and bond markets will be closed. The next market holidays will be Friday, March 29, for Good Friday, followed by Memorial Day on Monday, May 27.