China will further open up sectors such as telecommunications, airports and oil and gas exploration to private firms, China's cabinet said today, in an effort to halt a record slide in private investment growth.
The New Development Bank (NDB), an infrastructure-focused lender established by the BRICS emerging economies, plans to issue debt in the local currencies of its five member countries, the bank's president said.
David Lipton, first deputy managing director of the IMF, warned in a speech to a group of economists in the southern city of Shenzhen that companies' indebtedness is a "key fault line in the Chinese economy".
Growth in China's fixed-asset investment slipped below 10% for the first time since 2000 in January-May as a boost from record credit growth seemed to be quickly fading, putting expectations of further stimulus back on the table.
The S&P 500 is now just 20 or so points away from reaching its previous record high of 2134/5 achieved back in May 2015. Will it reach or surpass this level remains to be seen, but with oil prices rallying, Chinese data improving slightly and central banks remaining uber-dovish, I wouldn’t bet against it. That being said, profit-taking may cause the index to pause here for a while. So, a short-term pullback wouldn’t surprise me either.
Crude oil prices are higher ahead of this morning’s Energy Information Administration oil inventory report after a slightly larger than expected draw in total crude oil stocks reported by the American Petroleum Institute’s late yesterday afternoon. In addition the market remains concerned over the ongoing unscheduled shut-ins in supply from places like Nigeria while oil demand in China increased once again. Overall, the oil market sentiment remains biased to the upside.
Crude oil prices closed at the highest level all year as concerns about supply and demand continue to simmer. Not only do we have continuing attacks on Nigerian oil infrastructure and a breakdown of the Venezuelan socialist system, we also have record-breaking demand--demand that has killed subpar global economic growth and demand that could explode if the global economy gets any momentum. The one place where demand should be not be taken into consideration is not in China--even though it’s near a record high--but in India.