China's Credit Trends, Central Banks, and Inflation Prospects

Zforex Representative
China has witnessed an improvement in credit demand and a reduction in deflationary pressures, suggesting positive signs for both its economy and financial markets. This development has boosted optimism in European stocks and US futures, as it hints at China's economic stability and expectations that the US can manage inflation without harming growth.
In the midst of China's economic challenges, Country Garden, the country's largest private developer, faces a series of creditor votes, attempting to avoid default by extending debt repayments to onshore creditors over three years.
Meanwhile, the yen strengthened by over 1% against the US dollar after BOJ Governor Kazuo Ueda suggested that there might be enough information by year-end to assess wage growth, a crucial factor in determining the Bank of Japan's monetary policy adjustments.
Although Europe had a slow start, the focus this week centers on monetary policy decisions. The ECB is set to announce its rates on Thursday, with expectations of a potential rate hike, driven by hawkish comments from officials and rising crude oil prices.
The Bank of England's announcement is scheduled for September 21, following the Fed. BOE chief economist Huw Pill is addressing the situation today, paving the way for British jobs data on Tuesday and GDP figures on the following day.
Regarding the Federal Reserve, officials have conveyed a clear message lately – they are not eager to raise rates this month but remain cautious about inflation. Investors are eagerly awaiting key US inflation data, including the consumer price index on Wednesday and the producer price index on Thursday.
US Treasury Secretary Janet Yellen has expressed growing confidence that the US can manage inflation without causing significant harm to the job market.