China's Growth Target, Australia's Interest Rate Decision, and Election Uncertainties: What's Happening in Global Markets?
Significant economic developments are taking place worldwide. China emphasizes the importance of openness in combating unilateralism while reports from the central banks of Australia and New Zealand reveal how these countries are shaping their economic policies. Developments related to imports, exports, energy production, and monetary policies highlight the dynamics of economies in different regions and are closely monitored for their impact on global markets.
Chinese Premier Li: "We must open up more" Chinese Premier Li Qiang stressed that China will expand its opening-up policies and strategies in the fight against the increasing unilateral policies worldwide. Speaking at the opening of the annual China International Import Expo, Li announced that they would make breakthroughs in free trade zones and international investment agreements. He stated that access for foreign investors in sectors such as telecommunications and healthcare will be increased. Li Qiang expressed that these decisions are vital in confronting the challenges posed by unilateralism in the global economy, and he believes these steps will contribute to the growth of the Chinese economy.
China may achieve its economic growth target this year Chinese Premier Li Qiang announced that they believe the economic growth target set at around 5% for the year-end is achievable. The positive momentum created by economic policies was noted to support this scenario. Li specifically emphasized the impact of fiscal incentives on the economy. Highlighting the aggressive stimulus measures implemented in September, the Premier expressed confidence in the solid foundations of the Chinese economy. This confidence provides a positive outlook for the country's future economic prospects.
Australian Central Bank keeps interest rates steady The Reserve Bank of Australia (RBA) kept interest rates steady at 4.35% during the November meeting. This decision indicates that the bank plans to maintain a restrictive stance in its monetary policy. It was mentioned that this policy would continue until they are confident that core inflation has sufficiently slowed. The RBA has indicated that it has raised interest rates to their highest level in a decade within the last year to combat inflation. The bank will maintain flexibility in its future policies in the face of uncertainties related to economic growth.
Tokyo Stock Exchange extends trading hours after 70 years The Tokyo Stock Exchange has extended its trading hours for the first time in 70 years. The market will now be open from 9:00 to 15:30. This move by Japan Exchange Group increases market flexibility and provides investors with more time for transactions. The change not only extends trading hours but also makes stock market activities more accessible. This step is seen as an effort to maintain the competitiveness of the Japanese financial market.
New Zealand Central Bank assesses economic outlook pessimistically The Reserve Bank of New Zealand characterized the economic outlook as pessimistic due to rising unemployment and financial issues. Delayed private sector investment plans were cited among the reasons for weakness in economic activity. In its six-month Financial Stability Report, it emphasized that high-interest rates and stagnant global growth are reducing demand. The bank indicates that financial pressures on the real economy may further increase.
Iran to increase oil production Iran has decided to increase its daily oil production by 250,000 barrels. This step is seen as part of the government’s efforts to reduce inflation while accelerating economic growth. Additionally, there are plans to significantly increase natural gas production. The increase in oil production is expected to contribute positively to the country’s GDP growth, and Iran aims to support economic development through these initiatives in the energy sector.
Senator Warren calls for rate cuts from the Fed Senator Elizabeth Warren has proposed a 50 basis point interest rate cut to the Fed. Warren calls for a policy that will encourage more families to become homeowners as inflation approaches targeted levels. In a joint statement with Senator John Hickenlooper, Warren noted that this step would contribute to economic relief by reducing borrowing and housing costs.
U.S. elections may create uncertainty Grant White, portfolio manager at iA Private Wealth, predicts that the U.S. presidential election may create uncertainty in the markets. In an interview with BNN Bloomberg, he indicated that if the election results are close, the market volatility observed last year may continue. However, White stated that growth is expected to continue in the long term and emphasized that investors should be prepared for this period of uncertainty.
U.S. steel production declines The American Iron and Steel Institute (AISI) reported that the weekly steel production in the U.S. has decreased compared to the previous week. As of November 1, production reached 1.629 million net tons, showing a decline of 2.5% compared to the same period last year. Capacity utilization rates also showed a slight decline, highlighting the challenges faced in the sector. This drop in steel supply is considered a reflection of the slowdown in the global economy.