MSCI Cuts China Stocks Again in Global Indexes
MSCI has removed 186 Chinese stocks this year.
MSCI has removed 186 Chinese stocks this year.
Despite its recent strength, the pound is still below levels seen before the Brexit vote eight years ago.
According to Cointelegraph, the Reserve Bank of India (RBI) has proposed the development of a plug-and-play system to enhance interoperability in cross-border payments. This initiative aims to leverage the advancements in fast payment systems and central bank digital currencies (CBDCs) to improve efficiency in international transactions.RBI Governor Shaktikanta Das emphasized the importance of interoperability as a key design element for achieving maximum efficiency in cross-border payment systems. He acknowledged that while countries may prefer to design their systems based on domestic considerations, a plug-and-play approach could help maintain sovereignty while ensuring replicability.India has already made strides in this direction and is working towards developing such a system for the benefit of the global community. Das highlighted the need for traditional payment systems and CBDCs to be interoperable, not just within their own categories but also with each other. He noted that technical barriers could be addressed through common international standards, but the governance structure for long-term sustainability remains a challenge.Das pointed out that while wholesale markets have seen significant efficiency improvements, retail cross-border transactions still face multiple layers that add to costs and delays. He stressed the importance of ongoing initiatives and experiments in bilateral and multilateral arrangements to bring efficiency to cross-border payments, a recurring agenda for the G20 and international standard-setting bodies.India, which assumed the G20 Presidency in December 2022, has digital asset regulation as one of its key agendas. The Department of Economic Affairs is preparing a consultation paper on cryptocurrency legislation, expected to be released in September or October.
-- Most Asian currencies ticked lower on Wednesday as the dollar recouped more of its recent losses, while the Australian dollar was an outlier as sticky inflation...
According to Odaily, a member of the Polish Central Bank, Maslowska, has indicated that the possibility of an interest rate cut in 2025 cannot be ruled out. This statement comes amid ongoing discussions about the country's economic policies and future financial strategies. The potential rate cut is being considered as part of broader efforts to manage economic stability and growth in Poland.
Volume analysis offers traders profound insights that price action alone cannot provide. One of the key insights is the confirmation of price trends. When a price movement is accompanied by high trading volume, it signals strong market conviction, suggesting the trend is likely to continue.
As consumers show continued signs of weakness and tighter budgets, HSBC has downgraded the consumer discretionary sector (XLY) as a whole. HSBC Global Private Banking and Wealth global chief investment officer Willem Sels joins Catalysts to explain the reasoning behind this decision. Sels observes that financially healthy consumers are "choosing to spend more on... services and more on... leisure" experiences rather than discretionary items. However, he emphasizes the importance of distinguishing between companies within the retail space: "you want companies that have the pricing power because of their positioning." For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Angel Smith
-- Australia consumer price index inflation grew more than expected in July amid sticky fresh food costs, although softer housing and energy costs spurred a small...
The tech sector is in focus as leading AI company Nvidia (NVDA) prepares to report earnings on Wednesday. With expectations around AI growing throughout the tech sector, investors are eager to see when companies will begin to see returns on their investments. RBC Capital Markets managing director of software equity research Rishi Jaluri joins Catalysts to discuss his outlook on the tech sector and AI expectations. Jaluria believes seeing near-term returns on AI investments will be "really tricky." However, he argues it's better for these companies to overinvest rather than underinvest, stating, "This is truly a generational technological shift," and emphasizing that investors must have patience. Despite the general caution, Jaluria identifies only one company he believes will significantly monetize generative AI over the next twelve months: Microsoft (MSFT). He outlines three key factors necessary for Microsoft to see AI growth. First, the company needs to show investors acceleration or what AI could look like within the Azure business without capacity constraints. Second, other software companies need to develop AI modules, as Microsoft stands to benefit from this ecosystem growth. Finally, Jaluria emphasizes the importance of "actual usage and adoption of AI in Microsoft's portfolio outside of the Azure line." For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Angel Smith
– Russia stocks were lower after the close on Tuesday, as losses in the Mining, Power and Oil&Gas sectors led shares lower.