Weekly News Summary For June 14-20

Friday,  June 14: China’s Industrial Output Hits 17-year Low in May

Growth in China’s industrial sector unexpectedly slowed to hit a 17-year low in May, further supporting the possibility of weaker demand in the country, as the US  increases trade pressure.

Data from the National Bureau of Statistics showed on Friday that China’s industrial output rose by 5.0% in May from the previous year, ending below analysts’ forecasts of 5.5% and April’s 5.4% growth.

Monday, June 17: Huawei Sees $100B Revenue Drop This Year and Next

Huawei Technologies CEO Ren Zhengfei has lowered the firm’s revenue expectations for 2019, estimating sales to fall around $100 billion this year and next as a result of the US ban.

Even though the US’ move to blacklist Huawei was implemented for national security reasons, President Donald Trump indicated last week that, trade talks with China might offer a solution to the ban that’s preventing the company from buying US technology.

Tuesday, June 18: ECB Signals Further Stimulus as Fed Meeting Begins

European Central Bank President Mario Draghi has provided on Tuesday his clearest clue yet of more stimulus, suggesting that further rate reduction or asset purchases would be needed, provided that inflation in the euro zone showed no improvement.

Draghi’s statement came as the Federal Reserve starts its two-day policy meeting, which markets expect to end up without any changes being made to interest rates.

Wednesday, June 19: Global Stocks Climb on Central Banks’ Dovish Tone

World stocks rose near two-week highs on Wednesday, as investors lay their bets on a series of central bank stimulus, with odds rising over the US and the euro zone performing rate cuts as early as July.

MSCI’s world equity index added 0.4%, after gaining 1% on Tuesday, while Asian shares excluding Japan followed Europe’s and US’ lead, climbing nearly 2% to mark as their largest one-day rally since January, whereas Australian stocks advanced to an 11-year high.

Thursday, June 20: Bond yields Drop on Fed’s Potential Rate Cuts

Global bond yields edged lower on Thursday after the Federal Reserve hinted at a likely interest rate cuts later this year.

Having climbed as high as 2.8% in January, the US 10-year Treasury note fell as low as 1.974% on Thursday, marking as its lowest since November 16, while the Japanese 10-year bond yields dropped to a 3-year low of minus 0.160%, and the Australian yield hit a record low below 1.30%.