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Stocks Blog: Traders wanted positive news on lower rates — and US Fed chairman Powell delivered

Good day, traders — So, what a difference a day makes. US Fed chairman Jerome Powell signalled a rate cut is coming later this month. US markets soared, with the S&P rising above 3,000 for the first time. So did gold. This is what Hong Kong and mainland traders have wanted to hear.  Some positive news. We’ve got you covered today. Please send any questions or feedback to deb.price@scmp.com . — Georgina Lee and Deb Price     Source link

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Hong Kong rates climb to 2008 highs, dollar jumps before jumbo IPO

The Hong Kong Interbank Offered Rate (Hibor) rose across the curve on Thursday, with investors scrambling for cash ahead of the world’s biggest initial public offering of the year at a time of tight liquidity in the domestic market.Brewer Anheuser-Busch InBev NV (AB InBev) is seeking to raise up to US$9.8 billion by listing its Asia-Pacific business in Hong Kong this month.On Thursday, the one-month and two-week tenors shot up to 2.99 per cent and 3.53 per cent, respectively, their highest… Source link

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China 

China’s central bank is pushing commercial lenders to hold mortgage rates steady to curb the growth of home loans

The People’s Bank of China has asked commercial lenders not to lower the interest rate of home mortgages from the current level in order to curb the growth of home loans, according to people familiar with the matter.The PBOC offered verbal guidance to state-owned banks, joint stock banks and other commercial lenders, the people said, asking not to be identified as they’re not authorised to speak publicly. Banks received the guidance early this month, according to two of the people.The move… Source link

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Hong Kong co-working operators set to raise rates as consolidation weeds out weaker rivals

Rents for co-working space in Hong Kong, already the most expensive in Asia-Pacific at US$741 per month, are set to rise further as the sector undergoes another wave of consolidation even as uptake slows, say industry operators.According to the latest report from property agency Colliers, Hong Kong, with 141 shared office centres, topped 14 other cities in the region in terms of average desk cost per month, followed by Beijing at US$693, which has 45 co-working centres and Sydney, with 58… Source link

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As global growth slows, the world needs a new Marshall Plan, not lower interest rates

Workers at Dazhou railway station in Sichuan province, China, inspect tracks, which serve as part of the Belt and Road Initiative freight rail route linking Chongqing in China to Duisburg in Germany, on March 14. China’s belt and road is a step in the right direction as it invests in infrastructure to boost regional growth. Photo: Reuters Source link

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Shipping experts are ‘highly worried’ about rising military tensions in the Strait of Hormuz, surging rates, and the impact on energy-dependent Asia

The cost of chartering very large oil tankers to sail through the Strait of Hormuz in the Persian Gulf may rise by as much as a third, as shipowners and charterers pass on rising insurance and fuel costs following recent tanker attacks that threaten a vital artery for global energy supplies, according to experts.Tim Huxley, director of Mandarin Shipping, said charter rates for supertankers, could go up by as much as US$10,000 per day, lifting the current benchmark for very large crude carriers … Source link

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Australia’s property market has the right catalysts for a rebound: record low interest rates and investor-friendly government

Record low interest rates and the re-election of a business friendly government will provide a boost to a slumping Australian property market, according to market observers.This month the Reserve Bank of Australia embarked on its first rate cut in three years, slashing the cash rate to a historic low of 1.25 per cent. The surprise re-election of the Liberal/National Coalition, which means a retention of the current investor-friendly policy on capital gains tax and negative gearing, is also… Source link

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Hong Kong's rates curve is the most inverted in two decades

Expectations that liquidity will tighten in Hong Kong in the short term have helped drive the city’s interest rate swap curve into its deepest inversion since 1999.One-year interest rate swaps have climbed 19 basis points this week to 2.16 per cent, compared with 1.86 per cent for five-year contracts. The one-month interbank borrowing cost extended an advance on Thursday, jumping to the highest level since October 2008, amid seasonal demand for Hong Kong dollars. That has supported the currency… Source link

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Vanke to sell 251 flats in Tuen Mun on Sunday, defying downbeat mood amid trade war, street protests and rising rates

The Hong Kong unit of China’s most valuable property developer said it is putting 251 flats up for sale this Sunday, in a defiant launch against downbeat sentiments amid a worsening US-China trade war and the city’s biggest street protests in two decades.Vanke Property (Hong Kong) will sell 251 units of its Grand Le Pont apartments in Tuen Mun this Sunday in the latest phase of its launch, with prices in the fourth catalogue starting from HK$4.66 million for a 353-square foot unit to HK$9.3… Source link

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US Fed set to lead the way on lower interest rates, and China can benefit from another cut

The whispering campaign has already begun that US monetary policy should be tilting towards lower interest rates very soon. Once the Federal Reserve moves, other central banks should follow suit and China won’t be too far behind. Global trade tensions have exacted a heavy toll on the world economy and policymakers need to lay down some positive ground support before it’s too late. The world is staring into the jaws of another crisis and crying out for a new wave of easing. If St Louis Fed… Source link

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