China Injects Capital into Financial Markets

The price of oil on Friday dropped to $49.25 per barrel of Brent, although it finished the day at around $50.60. Support for oil came from a US oil rig report which showed active rigs up for the week from 330 to 341. Monday morning has seen oil trading stably in a narrow corridor of $50.3-$50.5; slightly below last week”s closing price.

The stock markets are up after a rethink of when the Fed is likely to increase interest rates which has shifted to an undetermined time in the future due to the Brexit referendum. The stock markets are on the up, though. The Nikkei 225 rose by 0.6%. The ASX Australia was up 0.3%. The Shanghai Composite rose by 1.8%, and the Hang Seng increased by 1.5%. Futures for the S&P500 were trading at 2099; 0.1% up on the previous trading day.

Last week the People”s Bank of China injected 840 billion yuan (129 billion USD) into the financial market to increase liquidity. As such, on Thursday and Friday the central bank conducted seven-day reverse repos (purchasing securities which must be sold back at a fixed price) to the tune of 50 billion and 130 billion yuan respectively. The interest rate for reverse repos on these two days was 2.25%, with this rate being valid for the two previous capital injections made by the central bank of 210 (Wednesday) and 180 billion yuan (Tuesday). On Monday the bank injected 270 billion yuan into the financial market.

The USD was trading slightly up against the yuan at 6.6623 (+0.0026 or +0.04%).

Last week, volatility for the EUR/USD was quite high and in favour of the euro. Throughout the day the pair lifted from 1.1070 to 1.1170 and completed the week at 1.1140. There”s no point expecting much activity today as it is Independence Day in the US. There”s just a Eurozone May PMI out which is expected to rise by 0.3% MoM whilst falling 4.1% YoY.

Source:: China Injects Capital into Financial Markets

About the Author
Alpari was founded in 1998 and is one of the world’s leading Forex brokers, offering clients a full package of the most modern financial instruments and technological solutions for online trading and investment. According to data from Finance Magnates, Alpari has been one of the largest Forex brokers in the world for a number of years. The trading turnover of the Alpari companies in 2014 was 2.5 trillion USD. Today Alpari is the world’s largest MetaTrader 4 Forex broker. The first half of 2015 saw company branches offering their services to over one million clients from over 150 countries in the world. Alpari clients have access to over 50 currency pairs and an extensive range of other instruments. The company offers the use of three trading platforms for computer and mobile applications for use with iOS and Android. Alpari is a member of international organizations such as The Financial Commission (Hong Kong) and CRFIN (Russia). Bonuses: the Alpari Bonus Program was launched in 2014 and allows clients to independently change their conditions for working on the financial market: reduce commission, save money on swaps, improve conversion rates and much more. Read More about Alpari HERE or you can visit their website direct by CLICKING HERE..

Related Posts

Leave a Reply