Goldman and Bank of America expect another bounce as July Communist Party meeting seen including more support measures.
Source: South China Morning Post
BREAKING: SPOT GOLD PRICE TUMBLED BY $20 PER OUNCE AS CHINA'S PBOC STOPPED GOLD RESERVES BUILDING.
China's end-May forex reserves are $3.2320 trillion, higher than the previous $3.2008tln. Gold reserves were unchanged at 72.80 million ounces, and the value of gold reserves was $170.9bln vs the previous $167.9 bln as gold price increased in May. Source: CN Wire
Japan likely dumped billions of U.S. Treasury holdings to finance its latest Yen intervention
Source: Barchart
Ray Dalio says benefits of investing in China outweigh risks
Source: South China Morning Post
India’s stock markets erase $371 billion after ruling BJP falls short of election expectations
India’s markets saw their largest one-day loss in four years after the electoral performance of Prime Minister Narendra Modi’s ruling Bharatiya Janata Party fell short of expectations. The All India Market Capitalization index, tracked on the Bombay Stock index, dropped over $371 billion on June 4 alone. The losses on Tuesday meant the Sensex index erased all its gains this year in a single day, going from a 5.85% year-to-date gain on Monday to a 0.22% loss position. Source: CNBC https://lnkd.in/df_9zjkZ
Japan owns $1.2 trillion of US Treasuries.
As Japanese yields rise, the domestic market will attract dollars away from US debt. "Rising long-term interest rates in Japan put upward pressure on long-term US Treasury yields:" Apollo's Torsten Slok Source: Bloomberg, Lisa Abramowitz
Exit polls show a clear victory for Prime Minister Modi’s party BJP + allies (called NDA = National Democratic Alliance).
The market is likely to view this very favorably, expecting another 5 years of policy stability, reforms and visibility on growth. Source: Bloomberg, David Ingles
Japan currently owns the highest share of public debt outstanding.
They will most likely move even higher... and everybody else will follow. There is no other option left. This chart also means there is still a lot of firepower for the Fed to keep treasuries interest rates under control if needed. Source: Michel A.Arouet
