Wednesday, August 21, 2013

Macro economic

Macro: China posted a second consecutive month of capital outflows in July, adding to tight conditions in an already strained financial market, central bank data showed. China's central bank and financial institutions sold a net Rmb 27.47b (US$4.50b) of foreign currency in Jul, compared with net sales of Rmb41.21b in Jun. Jul is the second straight month of net sales--after six months of net purchases-- pointing to continued capital outflows. The outflows come as several emerging markets experience a similar draining of capital as the U.S. Fed moves closer to rolling back a series of quantitative easing programs that began in 2008. The anticipated end of quantitative easing is seen as likely to push up U.S. interest rates, making investments in that market more attractive to investors than they had been in recent years.

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