Markets Insights

Spotlight on China as its central bank takes action

The Zubair oil field in Basra, Iraq. Oil's rally will be on investors' minds this week, with prices at a four-year high and Brent crude prices having climbed more than 25 per cent this year.
The Zubair oil field in Basra, Iraq. Oil's rally will be on investors' minds this week, with prices at a four-year high and Brent crude prices having climbed more than 25 per cent this year.PHOTO: REUTERS

Its markets will reopen after Golden Week; MAS policy decision, GDP data out this week

Investor focus will be on China's financial markets as they reopen after the Golden Week holiday, and on news yesterday that China's central bank made moves to lower financing costs and spur growth in the face of an escalating trade dispute with the US.

At home, the Monetary Authority of Singapore (MAS) will release the outcome of its semi-annual monetary policy review on Friday. The central bank shifted the policy from neutral to tightening at the last meeting in April - a move from zero per cent Singapore dollar appreciation within an undisclosed policy band based on its nominal effective exchange rate to a "modest and gradual" appreciation path.

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A version of this article appeared in the print edition of The Straits Times on October 08, 2018, with the headline 'Spotlight on China as its central bank takes action'. Print Edition | Subscribe