May Wrap Up
What’s moving the market?
- Biden’s Asia Visit
US President Biden begins his Asia tour aimed at boosting Indo-Pacific ties. Biden has visited South Korea and Japan to shore up the support of key Asian allies as there is concern that the Biden administration has got its hand tied in the Ukraine war when China overtake the world economy.
“To affirm the importance of our Indo-Pacific alliances” and “celebrate the indispensable partnerships”
- More Money for the Ukraine
G7 countries pledge nearly $20 billion in economic aid to Ukraine during the group’s meeting in Germany. The fund will be separate from other financial commitments to provide Ukraine with weapons and humanitarian aid in the war. Ukraine will also receive an additional $9.5 billion from the European Union to maintain its government services and ensure the survival of its economy.
- China’s Key Rate Cut
China banks cut a key interest rate for long term loans by a record amount from 4.6% to 4.45%, a move that would lower the mortgage costs and may help counter weak loan demand caused by the real estate slump and covid lockdowns. The latest rate will be applied to new mortgages immediately, while existing mortgages won’t be repriced until next year at the earliest.
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