China’s housing market slump is deepening, which is putting pressure on industrial metals.
Here are new home prices (month-over-month). Could it be a positive for GOLD demand? Source: Ronnie Stoeferle, The Daily Shot
As the yen teeters toward 160, Japan says it's ready to intervene in the Yen's collapse 24 hours a day if necessary 👀
Note that previous interventions have been unsuccessful, to say the least... Source: Barchart
Interesting article by The Wall Street Journal ->
US dollar stable coin BOOST DEMAND for US government bonds and help the US keep up with China... Source: Radar, WSJ
#china #macro: Retail sales beat expectations
The strong growth in retail spending is particularly notable given the continued pressure on the property sector, with negative spillovers to household sentiment. It’s probably a relief to a government looking to reset the economy over time. Source: CNBC. Bloomberg, Mohamed El Erian
📢 📢 📢 The Bank of Japan kept its benchmark interest rate unchanged on Friday, but indicated it’s considering the reduction of its purchase of Japanese government bonds.
The central bank left short-term rates unchanged at between 0% to 0.1% at the end of its two-day policy meeting, as widely expected. But notably, the bank said in its statement it could reduce its purchases of Japanese government bonds after the next monetary policy meeting, scheduled for July 30 and 31. QE tapering in Japan has a lot more potency than in the U.S., sheerly because of how much of the bond market the BOJ owns. Following the BOJ decision, the Japanese yen weakened 0.5% to 157.8 against the U.S. dollar, while the yield on 10-year JGB fell 44 basis points to 0.924. So absolutely no panic... Source: Bloomberg, CNBC
Brussels will impose tariffs of up to almost 50 per cent on Chinese electric vehicles, brushing aside German government warnings that the move could spark a trade war with Beijing.
https://on.ft.com/3yZxBnW
japan just sold $17 billion worth of Foreign Debt, the largest sale in 9 years...
Source: Bloomberg, Barchart
Goldman Sachs on the mixed impact of corporate stock splits
“Share prices typically rise after a firm announces a stock split. In theory, there is no change in the underlying value of a company when it splits its stock. However, empirically, the academic literature has generally found positive announcement effects around stock splits. We consider a sample of 46 Russell 1000 firms that completed stock splits since 2019. On average, these stocks generated a 4 pp excess return vs. the equal-weight S&P 500 in the week following stock split announcement. However, the stock price did not evidence a clear reaction after the stock split took effect. In addition, because many companies announce stock splits alongside earnings releases, it can be challenging to know how much of the stock rallies are due to the stock split as opposed to strong earnings results”. Source: Goldman Sachs
