Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Marketmind: Waiting for China

Economy May 10, 2022 03:27AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. Headquarters of the People's Bank of China (PBOC), the central bank, is pictured in Beijing, China September 28, 2018. REUTERS/Jason Lee/Files

A look at the day ahead in markets from Sujata Rao.

Earlier this year, investors' fears of an aggressive Fed rate hike cycle were tempered by signs China was looking to ease policy. That would offset, at least partly, Fed tightening, the reasoning went.

Instead, Beijing has more or less sat on its hands, offering the odd pledge of policy support, as it did on Monday. Despite dismal economic data, it is not flinching at locking down swathes of cities against COVID, and it has not blocked the yuan's descent versus the dollar to 19-month lows.


Aside from questions around how bad things might be inside the world's No. 2 economy, another risk, highlighted by long-standing China bull BlackRock (NYSE:BLK), is that of fresh tensions with the West around Beijing's tacit support for Russia. BlackRock said on Monday it had trimmed China exposure.

With economic growth concerns displacing inflation in markets' psyche as the biggest worry, the S&P 500 closed under 400 points for the first time in a year, oil is extending Monday's 5% fall and bond yields have slipped.

For Tuesday, an equity bounce may be on the cards, with U.S. futures tipping a firmer Wall Street session and European stocks are opening higher.

It could of course be all about technicals. Bearish S&P 500 positioning has been near record highs, Citi data shows, and at two-year highs for European blue chips. Having benefited from recent market falls, some bears may look to deploy those profits, Citi reckons.

Data just out shows UK shoppers cutting back on spending. and now the wait is on for Germany's ZEW investor sentiment index.

Later in the day, a raft of speeches from Fed officials will be perused to gauge whether 75 basis-point rate hike installments remain on the table. Or conversely, for any sign the Fed is taking note of economic growth worries.

Marketmind: Waiting for China

Related Articles

Dow Futures Move Higher Following Public Holiday
Dow Futures Move Higher Following Public Holiday By - Jul 04, 2022 3

By Oliver Gray - U.S. Stock futures were higher overnight trading on Monday, with major benchmark averages remaining closed during regular hours for a public holiday...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email