China’s 5% growth target is another blow to energy bulls | MarketTalk: What’s up today? | Swissquote

Show notes

There are plenty of reasons that should push equities lower, but equities continue trending higher.
Both European and American stocks closed last week with gains, and futures hint at a positive start to the week despite China’s announcement of a modest 5% growth target.
But the 5% growth target raises concerns about the amount of stimulus that the Chinese will put on the table, and the possible continuation of the government crackdown.
China’s modest 5% growth target weigh on energy and commodity prices. Iron ore and copper futures are down, and US crude’s 100-DMA resistance, around the $80pb level, will likely remain strong.
On this week’s agenda:
FED talk: Federal Reserve (Fed) Chair Jerome Powell will deliver his semi-annual testimony before the Senate this week.
US Jobs: the US economy is expected to have added around 200’000 jobs, with the possibility of a negative surprise after last month’s above half a million read.
The other central banks: the Reserve Bank of Australia (RBA), the Bank of Canada (BoC) and the Bank of Japan (BoJ) will be announcing their latest policy verdicts this week and among them, only the RBA is expected to hike the rates by another 25bp despite last week’s surprise softening in latest inflation and growth numbers.
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