From trading economics.com website: "The Shanghai Composite rallied 1.3% to above 2,850 while the Shenzhen Component gained 0.4% to 8,720 on Thursday, with mainland stocks rising for the third straight session as fresh stimulus in China lifted market sentiment. The People’s Bank of China unexpectedly announced late on Wednesday that it will reduce banks’ reserve ratio by 50 basis points next month in a bid to boost the country’s struggling economy. The move would free up around 1 trillion yuan in long-term capital to the economy. Earlier this week, China’s cabinet also pledged to stabilize capital markets, reportedly seeking to deploy about 2 trillion yuan as part of a fund to buy mainland shares."
Iron Ore up.... From above website: "Prices for iron ore cargoes with a 63.5% iron ore content for delivery in Tianjin edged higher to the $133 per tonne mark, rebounding from the two-month low of $128.5 per tonne touched on January 17th as markets weighed on an uncertain outlook for Chinese commodity demand. Hot rolled coil and stainless steel inventories at major Chinese warehouses edged lower in the third week of January, trimming previous concerns that low consumer appetite limited the purchasing of ferrous metals. Still, economic headwinds for the world’s top iron consumer kept ore prices 7% lower year-to-date. New home prices in China sank at the sharpest pace since 2015 in December, stretching the declining momentum to the sixth month and underscoring the slump in property demand in the country. The developments matched market players' observations of robust portside iron ore inventories, as the steel mills struggle with decreasing margins."
Could easily push us above 60 cents now.
MGX Price at posting:
54.5¢ Sentiment: Hold Disclosure: Held
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