China's yuan rebounded from a one-month low on Thursday, after the central bank set its guidance at the strongest in nearly three years in a bid to calm nerves against the backdrop of Iran conflict.
China on Thursday set its GDP growth target for 2026 at 4.5% to 5%, the lowest on record since early 1990s, as Beijing grapples with persistent deflationary pressures and higher US tariffs.
Annual consumer inflation target remains at "around 2%." First set in 2025, that is the lowest level in more than two decades, which makes the case for more stimulus to boost domestic demand.
Beijing pledged to continue to implement an "appropriately accommodative" monetary policy to bolster growth, including potential interest rate cuts and lower reserved requirement ratio.
Top US and Chinese trade negotiators are expected to meet in mid-March with Chinese purchase commitments for Boeing aircraft and soybeans potentially on the table, Bloomberg reported.
US Treasury Secretary Scott Bessent said on Wednesday that an increase in new temporary global import tariff to 15% from 10% was likely to be implemented sometime this week.
Well supported by 50 SMA, the yuan again rose above 6.9 per dollar. The uptrend looks intact with initial hurdle around 6.867, unless a sharp decline below 7 per dollar occurs to negate the bullish bias.
Asset recap
As of market close on 4 March, among EBC major products, AMD shares led gains. the company received a boost from a series of positive developments and commentary centred on its AI business.
Investors flocked again to tech shares, lifting the Nasdaq 100 after a news report that Iran had signalled openness to talks. Bessent said oil market well supplied amid Iran war.
Rockwell Automation slumped after multiple recent analyst downgrades. With its shares trading at a relatively premium valuation, even modest shifts in sentiment can translate into outsized one-day moves.
EBC Financial Group Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC Global Financial Collaboration or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
면책 조항: 본 게시글에 표현된 견해는 전적으로 작성자의 견해이며 Followme의 공식 입장을 대변하지 않습니다. Followme는 제공된 정보의 정확성, 완전성 또는 신뢰성에 대해 책임을 지지 않으며, 서면으로 명시적으로 언급되지 않는 한 해당 내용을 기반으로 취해진 어떠한 조치에 대해서도 책임을 지지 않습니다.
