The People’s Bank of China cut interest rates below expectations. Analysts, who expected strong incentives for the housing sector in the country, were also disappointed. Evaluations that the incentives in China might fall below expectations decreased the appetite in the markets.
US Stock Exchanges, which are closed for a public holiday on the first trading day of the week, are negative in the first futures of the new trading day.
Stock markets in Asia fell after the Bank of China’s (PBOC) interest rate cut decision, which fell short of expectations. Shares of Chinese companies performed relatively poorly on the Hong Kong stock market. Chinese housing companies fell the most. The offshore yuan increased its losses after the interest rate decision. Similarly, oil prices fell on concerns that incentives in China would not stimulate demand sufficiently.
Positive signals in US-China relations.
US President Joe Biden said that Foreign Minister Antony Blinken, who returned to his country after completing his two-day visit in Beijing, did a very good job, and that the US-China relations are on the “right path”.
When asked if he thinks he has made progress in relationships, Biden said: “It’s not a feeling. You know progress has been made,” he said. Blinken, who met with Chinese President Xi Jinping during the visit, said they agreed that relations “need to be stabilized”.
Chinese Foreign Ministry official Yang Tao said in a statement after the meeting that Blinken received requests for the United States to stop saying China is a threat and to end sanctions.