The Stock Exchange turns its gaze to China, which eases its exchange rate policy

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The Paris Bourse is expected to continue the momentum of the past two weeks, the prospect of a sustained recovery in the Chinese economy relegating doubts about a quick agreement in the US Congress on a fiscal stimulus package to the background.

The MSCI Asia-Pacific ex- Japan index hovered at a two-and-a-half-year high this morning, driven by the 2.5% increase in the CSI 300, which includes the main capitalizations of the Shanghai and Shenzhen stock exchanges , while the Hang Seng took 2% in Hong Kong.

The China People’s Bank lifts his foot on exchange

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President Xi Jinping is due to visit Shenzhen this week to celebrate the fortieth anniversary of the establishment of the special economic zone. The market is speculating on the announcement on this occasion of additional measures to open up new areas of the economy to foreign investors. The sharp rebound in tourism and keeping the health crisis under control are helping to reassure the markets at a time when the central bank is trying to limit the rise of the yuan against the dollar without preventing investors from betting on its strengthening. The People’s Bank of China has lifted the obligation for banks to hold a minimum amount of yuan on future contracts, thus removing a brake on further depreciations of its currency.

”  We continue to anticipate a strengthening of the yuan alongside our forecast of solid Chinese growth and a favorable interest rate differential between China and the United States,  ” Goldman Sachs analysts write in a note. .

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In the United States, negotiations on an expanded congressional support plan appear to be deadlocked after negotiations between the Democrats and the Trump administration failed, especially as the US president called on Congress to support his proposal a limited plan comprising aid to airlines, support measures for small businesses and checks paid directly to households.

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