Rumor Denied.
IMF Package Denial Sends ES And EURUSD Tumbling
And on China.
China Profit Growth Slowing as Property Curbs Bite Bloomberg
IMF Package Denial Sends ES And EURUSD Tumbling
Well they bought the rumor and now comes the sell-the-news/rumor/denial part of the evening as Dow Jones cites an official that 'No Discussion Within G-7 Of Reported Large Package For Italy".
EUR lost 40pips and ES around 10pts as the latter compressed close to CONTEXT's broad risk view of the world.
In the meantime - Some comments, via Bloomberg, from China not helping sentiment
*MOFCOM'S CHEN: EU RESCUE FUNDING STILL FACES SHORTFALL :MOCZ CH
*MOFCOM'S CHEN: CHINA OBSERVING QUIETLY EURO SITUATION :MOCZ CH
*MOFCOM'S CHEN: WORLD ECONOMY FACES DOWNWARD PRESSURE ON EU DEBT
And on China.
China Profit Growth Slowing as Property Curbs Bite Bloomberg
Chinese corporate profit growth, slowing on waning export demand from Europe, may be further undermined as a campaign to cool property prices reduces the value of investments.
Industrial companies’ net income rose 12.5 percent in October from a year earlier, less than half the 27 percent pace from January to September, a statistics bureau statement showed yesterday.
The slowdown adds to evidence that Europe’s deepening financial crisis and a faltering recovery in the U.S. are weighing on profits. More than 60 percent of Chinese companies that sold bonds in the past six months invest in the real estate market, where sales are weakening under government curbs that Vice Premier Li Keqiang pledged on Nov. 25 to maintain.
“The slowdown of the economy will become more prominent in the next two quarters,” said Wang Tao, a Hong Kong-based economist for UBS AG who has also worked for the International Monetary Fund. She said that industrial companies’ profit growth may keep cooling and the government may enact “more obvious policy loosening in the first quarter of next year.”
The government can support growth by ramping up state housing construction, while moderating inflation may leave room for monetary policy loosening.
China’s economy can avoid a so-called hard landing with an expansion of more than 8 percent next year, Wang said. The economy grew 10.4 percent in 2010 and 9.1 percent in the third quarter of this year.
Noyer on Crisis
In Tokyo, Bank of France Governor Christian Noyer said the crisis in Europe, China’s biggest export market, has worsened “significantly” over the past few weeks and bond markets in the euro area “are not functioning normally.”
Asian stocks jumped on speculation that the International Monetary Fund will aid Italy, a topic that Noyer declined to discuss. The MSCI Asia Pacific Index rose 1.9 percent as of 1:16 p.m. in Tokyo, the first increase in four days.