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On January 27th, the Zhejiang Provincial Department of Culture and Tourism issued a document to support large-scale commercial performances such as concerts and music festivals held in Zhejiang Province, and to encourage performances to have their only national stop, premiere in Zhejiang, or begin their tour in Zhejiang. The document provides subsidies for eligible performance projects. On January 27th, a staff member from the Zhejiang Provincial Department of Culture and Tourism stated that, according to the document, eligible performance companies will receive subsidies ranging from 200,000 to 1 million yuan. Companies within the province, except for those in Ningbo, are eligible to apply.January 27th - The Fourth Session of the 14th Qinghai Provincial Peoples Congress convened today in Xining, with Qinghai Governor Luo Dongchuan delivering the government work report. The report outlines the main expected targets for Qinghais development in 2026 as follows: GDP growth of around 4.5%, striving for even better results; over 60,000 new urban jobs, over 1.06 million rural laborers transferred to other jobs, and an urban surveyed unemployment rate of around 5.5%; a consumer price index increase of around 2%; per capita disposable income growth in line with economic growth; total grain output maintained above 1.1 million tons; water quality of the main streams of the Yangtze, Yellow, and Lancang Rivers within Qinghai Province consistently maintained at Class I or above; air quality ranking among the best in the country; and achieving the national targets for carbon emission control and major pollutant reduction.On January 27th, Hong Kong stocks opened higher across the board, with the Hang Seng Index rising as much as 1.6%. At midday close, the Hang Seng Index stood up 1.07%, returning to the 27,000-point mark; the Hang Seng Tech Index rose 0.2%. Heavyweight tech stocks showed mixed performance, with Bilibili (09626.HK) surging over 5%, Alibaba (09988.HK) rising 2.18%, while JD.com (09618.HK), NetEase (09999.HK), and Tencent Music (01698.HK) fell over 1%. Gold stocks continued to rise, with Zijin Mining (02899.HK) up over 4% and Zijin Gold International (02259.HK) up over 10%, both hitting record highs. Insurance and banking stocks were also active. Meanwhile, steel, nuclear power, water, and coal stocks were mostly weak.The yield on Japans 30-year government bonds rose 3.5 basis points to 3.655%.Indian Oil Corporation executives said the company will source 50% of its oil through long-term contracts in fiscal year 2027.

Prior to US Data, the US Dollar Index consolidates recent gains above a 20-year high

Alina Haynes

May 13, 2022 10:13

US Dollar Index (DXY) bulls take a pause around a 20-year high, recently falling to 104.75 as sluggish markets cause consolidation of recent rapid swings, predominantly in favor of the dollar, during Friday's Asian session.

 

The dollar index has risen for three straight days to reestablish a multi-year high at 105.00. The underlying dynamics may be related to the market's anxieties about inflation and growth, as well as the Fed's faster/heavier rate hikes and covid/geopolitical concerns.

 

Nonetheless, the most recent decline in the DXY is influenced by the rebound in US Treasury yields from a two-week low, as well as moderately bid stock futures. The US 10-year Treasury yields exhibit a corrective pullback after touching a two-week low the day before, around 2.86 percent as of press time, whilst the S&P 500 Futures exhibit modest gains while licking their wounds near a one-year low.

 

The US Producer Price Index (PPI) matched expectations of a 0.5% MoM increase and kept inflation fears on the table the previous day. However, Fed Chairman Jerome Powell reaffirmed the expectation that the Fed will raise interest rates by a half-point at each of the next two policy meetings. As markets anticipate a 75-basis-point (bps) rate hike, the same factor may have caused the rates' comeback. On the same line, San Francisco Fed President Mary Daly stated, "Is it fifty, twenty-five, or seventy-five? These are matters that I'll discuss with my colleagues, but my starting point is that we don't want to go so swiftly or abruptly as to startle the American people.

 

In the future, DXY bulls will search for more evidence to validate the Fed's 75 basis point rate hike, which highlights today's preliminary readings of US Michigan Consumer Sentiment data for May, which is predicted to be 64 vs 65.2 before. Risk catalysts, such as covid worries from China and geopolitical events regarding Russia and Ukraine, are also significant for the US Dollar Index.

Technical Evaluation

Despite the recent dip, the DXY's short-term downside is supported by the November 2002 lows and the last month's high, which are near 104.10 and 103.95, respectively. In contrast, bulls are well-positioned to attempt the high of 107.31 from December 2002.

 

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