28 Jun 2013
Flash: PBoC Gov Zhou soothes markets - Danske Bank
Fxstreet.com (Barcelona) - Danske Bank analysts note that in China, the PBoC governor Zhou Xiaochuan delivered soothing comments saying that the nation will maintain market stability and adjust policies at the right time.
They add that he also stated that China’s growth slowdown remains in a reasonable range and the economy is stable. Additionally, they note that the overnight Shibor rate fell further by 50bp reaching 4.94% after hitting a peak above 13% last week. They feel that it seems that risk markets have found a bottom for now. They write, “Volatility still seems likely over the summer but given that a lot of positions have probably been squared out in the recent wash-out, markets seem better balanced providing a stronger base for risk assets.”
They add that he also stated that China’s growth slowdown remains in a reasonable range and the economy is stable. Additionally, they note that the overnight Shibor rate fell further by 50bp reaching 4.94% after hitting a peak above 13% last week. They feel that it seems that risk markets have found a bottom for now. They write, “Volatility still seems likely over the summer but given that a lot of positions have probably been squared out in the recent wash-out, markets seem better balanced providing a stronger base for risk assets.”