China's Stimulus Push Leads the Way, But More Easing Needed Globally

Lots of news circulating regarding China’s recent monetary and fiscal policies.

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While this indicates a potential turning point, China🇨🇳 still requires significantly more stimulus to fully revive its economy. Lending and credit growth exceeded expectations once again, with projections suggesting fiscal stimulus could reach up to 6 trillion yuan by year-end.

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In the coming weeks, additional policy measures from the East are expected, and USDCNY will be a useful gauge for tracking these moves

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Though China is leading the charge, we are still awaiting similar action from the West and other major central banks.

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Our outlook remains bullish as we head into year-end. China is pushing for more easing, while slow-moving economies and central banks look poised to follow suit-a bullish combination that doesn’t occur often.

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From a data standpoint, our liquidity index has seen a $2.922T decline (a -2.2% change) due to increased bond market volatility. The RoC metric, however, remains long.

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Disclaimer: RRP has not been updated today, likely due to the Columbus Day holiday in the US.