Archives of “June 28, 2021” dayrss
Closing changes in the main European bourses:
- UK FTSE 100 -0.9%
- German DAX -0.4%
- French CAC -1.0%
- Italy MIB -0.9%
- Spain IBEX -1.6%
That’s not a great start to the week for European equities.
Oil is holding steady, up 0.2% on the day
Latest data released by Destatis – 28 June 2021
- Prior +1.4%
- Import price index +11.8% vs +11.4% y/y expected
- Prior +10.3%
Golf vs Tennis
A quiet one to kick start the new week
From Moody’s latest piece on China shadow banking, the key highlights:
- Shadow banking assets as a share of nominal GDP fell in Q1 2021 to the lowest in eight years
- Economy-wide leverage to stabilize as authorities aim for a credit growth rate that matches nominal GDP growth
- Moody’s measure of the economy-wide leverage ratio declined in the first quarter of 2021
- The ratio is set to decline and stabilize in 2021 amid the steady economic recovery and a less accommodative credit environment, as the Chinese government targets a rate of credit growth that matches nominal GDP growth.
China leverage levels have been out of the headlines, property prices are reported as showing a steady if unspectacular rate of increase.
The Summary of Opinions at the Monetary Policy Meeting on June 17 and 18, 2021 precedes the minutes for this meeting by many weeks.
- BOJ has approached time when it needs to show direction on what it can do on climate change via monetary policy
- BOJ’s response on climate change must be tied to its mandate of achieving stable economy
- BOJ must make its climate change scheme flexible one
- BOJ can avoid getting directly involved in income distribution by back-financing loans, investment banks make on climate change
- govt rep said BOJ’s plan on climate change is timely
- Japan’s inflation likely to accelerate as pent-up demand begins to appear in latter half of this year
- Japan’s prices likely to lack momentum despite support from rising commodity costs, improvement in demand
- inflationary pressure likely to remain subdued in Japan due to sticky deflationary mindset
I bolded the remarks on inflation. The BOJ pretty much always expresses a degree of optimism that inflation will rise, but for a decade or more they have missed their target by a long, long way and continue to do so.
The US has carried out airstrikes in Iraq and Syria on Iran-backed militias
- targeting operational and weapons storage facilities
- two locations (one each in Syria and Iraq)