Ruble: an Unexpected Chinese gas strengthening
The President of the United States Donald trump announced the introduction of a new duty of 10% on products from China in the amount of $200 billion in Measures introduced since September 24. In addition, trump played in advance (we will remind that yesterday in his tweet, he admitted that negotiations with China are “not very good”) and announced in advance to the next round of tariffs. This time it will be about the volume of Chinese imports in the US $267 billion, which will be also charged in the case of the adoption of retaliatory measures by the Chinese side.
As we have said, Beijing, clearly pre-prepared for this turn of events, he immediately announced the answer. From noon September 24, Beijing time, China will impose duties ranging from 5 to 10% on imported US goods totaling $60 billion Tariffs apply to household items, including food, furniture and textiles. It is noteworthy, by the way, Beijing is almost completely frozen the import of American energy.
Meanwhile, the Prime Minister of China Li Keqiang spoke at the opening plenary session of the conference of the world economic forum in Tianjin and the Chinese made some interesting statements.
Lee admitted that “China has faced many problems.” However, he added that rumors that the decline in foreign exchange value of the Renminbi against the U.S. dollar is a deliberate political decision of Beijing as a reaction to the actions of trump is “just not true”. Today, as of 11:30 GMT trading the yuan a reserve currency on a mark of 6.85.
But Li Keqiang in his speech, relentlessly insisted that “China, in General, satisfied,” their economic situation. He noted that Beijing “has prepared a sufficient list of tools to solve any possible problems in this regard” and added that “these policy instruments will improve the stability of China to cope with various problems and difficulties”. According to some reports, sales of China’s “short” and “medium” treasuries in the amount of up to $50 billion led to a further rise in yields the past and, as a consequence, more horizontal alignment of the futures curve UST’s. If we are talking about such tools, and China is ready to use them – Yes, they are available there.
One of the interesting reasons contributing to the further improvement of moods on the Russian platforms – the words of the President of the United States trump before yesterday’s meeting with the President of Poland Andrzej Duda that Washington has no intentions to impose sanctions against companies involved in the construction of the pipeline “Nord stream-2”. Just trump believes this project is “poor and disadvantage” for Europe, but to do nothing in this regard will not.
It seems that Russia gradually takes on its prescribed earlier, a profitable intermediary niche between the major actors in trade wars (USA, China, Europe), and the market seems to feel it. Positive back on all Russian courts, and on the background of the achievement Index of the Moscow exchange historical high of 2413, the ruble as the currency of funding receives additional support and is trading as of 12:30 Moscow time on a mark 66,98 in tandem with the dollar and 78,37 – in tandem with the Euro.
“International financial center”