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On September 11, most short-term Shibor rates rose. The overnight Shibor rate fell 5.6 basis points to 1.369%, the 7-day Shibor rate rose 1.7 basis points to 1.466%, the 14-day Shibor rate rose 0.9 basis points to 1.51%, and the 1-month Shibor rate rose 0.2 basis points to 1.53%.Fitch: The financial position of gas operators in Asia Pacific remains strong.On September 11th, the State Council Information Office held a press conference this morning on the theme of "High-Quality Completion of the 14th Five-Year Plan," highlighting the achievements of health care during the 14th Five-Year Plan period. According to the report, from 2020 to 2024, the number of primary healthcare institutions will increase from 970,000 to 1.04 million, the number of healthcare personnel will increase from 4.34 million to 5.26 million, and the number of medical consultations will increase from 4.1 billion to 5.3 billion.On September 11th, UBS published a report stating that Pop Mart (09992.HK)s share price has fallen approximately 19% from its recent high. The bank attributes this primarily to three factors: profit-taking following its inclusion in the Hang Seng Index, weakening secondary market prices for some products, and a decline in global Google search trends. Its worth noting that the bank has observed similar trends before, but these developments havent altered its positive outlook on Pop Marts fundamentals. UBS believes that Pop Marts current share price correction is creating buying opportunities ahead of anticipated short-term catalysts, including the launch of new Halloween products and its 15th anniversary collection, as well as the crucial Christmas sales season. The bank reiterated its Buy rating on the stock with a target price of HK$432.On September 11th, South Korean President Lee Jae-myung stated that he saw no need to persist with a previously proposed plan to expand the scope of capital gains tax. At a press conference on Thursday, Lee mentioned that the formal proposal, presented at the end of July, would have lowered the capital gains tax threshold from 5 billion won (approximately $720,000) to 1 billion won, raising questions about the governments commitment to reviving the stock market. "Some seem to see this as a litmus test of whether we are truly committed to policies to revive the stock market," Lee said. "If thats the case, I dont think its necessary to persist to the end. I will submit this issue to the National Assembly for review." The original proposal had caused a sharp drop in South Korean stocks and faced strong opposition from retail investors. Following Lees remarks, the Kospi index rose as much as 0.9% during intraday trading on Thursday before retreating. The index had reached a record closing high the previous day, partly due to market expectations that the government would abandon the tax increase proposal.

Bank of Canada, Canadian Dollar, USDCAD, Inflation

Larissa Barlow

Apr 14, 2022 10:26

The Bank of Canada (BoC) chose to increase its benchmark policy rate by 50 basis points (bps), the highest increase in more than two decades. Additionally, the BoC announced that quantitative tightening (QT) would begin on April 25th, as the central bank seeks to combat three-decade high inflation. According to the policy statement, "interest rates will need to rise further" because inflation has exceeded previous predictions for 2022. Notably, inflation predictions were revised significantly upward, with the Bank of Canada now expecting inflation to hover around 6% for the most of the first half of 2022.

 

Canada, like other central banks, has struggled to curb price pressures. In January, the Bank of Canada forecasted first-quarter inflation of 5.1 percent. However, it is on track to exceed 6%, much beyond the BoC's aim of 2%. Due to Russia's invasion of Ukraine, economists worldwide have been obliged to revise their inflation and growth forecasts.

 

The BoC also confirmed its balance sheet reduction plans, with the central bank opting not to replace maturing bonds. QT is scheduled to begin on April 25, with around a quarter of the government debt acquired during the pandemic (approximately C$350 billion) maturing during the next 12 months. 

USD/CAD 1 Hour Chart

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Despite the Bank of Canada's rise, the USDCAD continues to trend higher. The cross briefly declined in nine consecutive sessions, with the Canadian Dollar's rise supported by increasing oil prices. This decrease peaked on April 5th near 1.2402, and has since recovered significantly. A fall in risk appetite has resulted in a significant bid for the USD in recent days, with the US Dollar Index gaining for the last ten days. With the USDCAD firmly on the rise, any dips may be bought as we approach the May FOMC meeting, at which the Fed is likely to hike rates by 50 basis points and announce plans for balance sheet reduction.