Daily Market Report (10 Sept 2019)
- Bank of China has again cut the reserve requirement ratio for banks potentially releasing around 900bn yuan or US$125bn into the financial system to stem the expected economic slowdown in the country amid the ongoing trade spat with the US.
- This is by far the most aggressive stance made by the Chinese authority which should have positive impact cascading down to other countries within the region.
- Meanwhile, we reckon the domestic market to be sideways in the absence of any catalysts with the 1,600 seen as the immediate psychological support level.
