SHANGHAI, Aug. 20 (SMM) – The minutes of US Fed’s meeting for July turned out to be dovish. July’s CPI was up 0.1% MoM and core CPI (food and energy prices excluded) grew 0.1% from June, the lowest since December 2014 and far missing the Fed’s target of 2%. US dollar index was thus weighed down.
The People’s Bank of China intervened in the interbank market for a second time this week on Wednesday, pumping in RMB 110 billion (USD 17.17 billion) through open market operations to steady interbank rates that have been shooting up as investors pull out of the yuan. The PBOC confirmed after the market close that it injected RMB 110 billion to 14 financial institutions for a period of 6 months at a rate of 3.35 per cent. This helped eased market sentiment and pushed Chinese stocks to rebound.
The Vice-president of the European Commission announced that it strongly hopes that agreement can be reached with Greece and will consider a debt relief after the first round of assessment. German Finance Minister also agreed IMF can provide assist to Greece but meanwhile noted that a debt relief is impossible.
EIA crude oil inventories unexpectedly increased 2.62 million bbl in the week ending Aug. 12. Global oil prices slumped. The most active US oil futures contract finished down 3.35%.
US dollar index edged down 0.6% whereas the EUR:USA grew 0.85%. European and US stocks dropped across the board. LME copper ended down but other LME base metals all rose. LME lead and zinc gained most.