Kaohoon Morning Brief – 9 September 2021

1) ECB to maintain policy rate at zero

Investors are looking forward to the European Central Bank (ECB) meeting today in which policy rate and QE easing will be discussed. The market expected the central bank to maintain the policy rate at 0% even with a spike of inflation rate, while looking for signs of asset tapering.

 

2) Goldman Sachs, Credit Suisse and J.P. Morgan has a negative outlook on U.S. economy and equities

S&P 500 plunged for three-straight session in concerns of economic slowdown from the ongoing coronavirus pandemic as Goldman Sachs downgraded U.S. economic outlook while Credit Suisse and J.P. Morgan saw U.S. equities underperforming in the near future.

 

3) U.S. jobless claims expect at 335,000 

U.S. jobless claims will be reported on Thursday. The market expected 335,000 Americans filed for unemployment last week, compared to 340,000 in the previous week, which was the lowest since the beginning of Covid-19 pandemic.

 

4) China will take it easy on economic stimulus

China’s monetary policy makers stated that the central bank will not embark on a large-scale and flood-like stimulus measure, while the monetary policy rate will remain within a normal range. The statement came after a wide speculation in the market that the central bank would take aggressive measures to boost economic growth.

Still, China reported better-than-expected trade data for August earlier this week. Exports rose 25.6% and imports surged 33.1%, compared to the same period last year.