Chinese central bank policymakers have come out swinging. The PBOC on Tuesday slashed its reserve requirement ratio to the lowest level since at ...
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| | Top News  Getty Images Chinese central bank policymakers have come out swinging. The PBOC on Tuesday slashed its reserve requirement ratio to the lowest level since at least 2020, as well as trimming its main short-term interest rate. The package also targeted the nation's beleaguered property market, with measures to lower overall mortgage costs and a de-stocking program that eased rules for second-home purchases.
Looking for a revival: It's all being aimed at getting the country's growth trajectory back on track. A series of downbeat data has revealed a weak consumer and long deflationary streak amid mounting debt problems and a spiraling property crisis. A strong post-COVID pandemic bounce has never materialized, with worries about job security and much attention shifting to exports given the weaker domestic economy.
It's also important to note the timing of the monetary stimulus package, which is aimed at restoring confidence and may help China approach its full-year growth target of "around 5%." A week ago, the Federal Reserve initiated a new easing cycle with a jumbo 50-basis point rate cut, potentially giving the PBOC room to ease in the face of deflationary pressure. It had likely been hesitant until now as higher American interest rates generally weaken foreign currencies, and if going at easing alone, China could have witnessed capital flight to the U.S.
Market movement: Chinese investors applauded the latest stimulus blitz, which included 800B yuan ($114B) of stock market liquidity and allowed funds and brokers to tap central bank facilities to buy equities. China's blue-chip CSI 300 Index (SHSZ300) soared 4.3% on the news, after falling to a five-year low earlier this month. The broader Shanghai Composite (SHCOMP) and Hang Seng Index (HSI) also advanced significantly, each climbing 4.1% by the end of the session. | | Financials The Department of Justice is reportedly planning to file an antitrust lawsuit against Visa ( V), alleging that the company illegally monopolized the U.S. debit card market. The news sent its shares down 2% premarket on Tuesday. The lawsuit from the DOJ's antitrust division also claims that Visa entered into exclusive contracts to hinder the growth of rival payment processors and block technology firms from entering the market. The case is the result of a sweeping DOJ investigation, launched over three years ago, into potential anticompetitive practices in Visa debit card transactions. ( 6 comments) | | Featured  Want to get more from investing efforts? Take our world-class Premium service for a test drive. Sign up now, and you can try all of Premium's powerful tools and resources: - Our proprietary Quant ratings, plus ratings from Wall St. and analysts on Seeking Alpha
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Past performance is no guarantee of future results. Any content and tools on the platform are offered for information purposes only. Seeking Alpha does not take account of your objectives or financial situation and does not offer any personalized investment advice. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. | | Healthcare A Senate committee hearing scheduled this morning has all the makings of a showdown as Novo Nordisk ( NVO) CEO Lars Fruergaard Jørgensen will be the sole witness to testify on the prices of diabetes and weight loss drugs Ozempic and Wegovy. The committee is chaired by Sen. Bernie Sanders (I-Vt.), a well-known critic of Big Pharma who has contended that Ozempic could be sold for $100 per month with Novo still making a profit. Jørgensen, however, is set to argue that Novo is not the problem, and will place the blame on pharmacy benefit managers. ( 5 comments) | | Aviation Boeing's ( BA) "best and final contract offer" will not be put to a vote by its largest union this week, as negotiators claim the proposal was made public without any discussion and does not go far enough to address workers' concerns. The planemaker sweetened its offer to include a 30% pay hike, a $6,000 ratification bonus and the reinstatement of a performance-linked bonus. "Your negotiating committee did not have any input on this offer," the union told its members. Separately, nearly 5,000 workers at Textron's ( TXT) aviation unit have gone on strike after rejecting its contract offer. ( 4 comments) | | Today's Markets In Asia, Japan +0.6%. Hong Kong +4.1%. China +4.2%. India flat.
In Europe, at midday, London +0.4%. Paris +1.6%. Frankfurt +0.8%.
Futures at 6:30, Dow +0.2%. S&P +0.2%. Nasdaq +0.3%. Crude +2.8% to $72.33. Gold +0.2% to $2,658.10. Bitcoin +0.2% to $63,691.
Ten-year Treasury Yield +4 bps to 3.79%. Today's Economic Calendar | | | | | Seeking Alpha's Wall Street Breakfast Podcast Seeking Alpha's Wall Street Breakfast podcast brings you all the news you need to know for your market day. Released by 8:00 AM ET each morning, it is a quick listen that you can put on as you get ready to start your working day. | | | | |
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