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China's central bank provided short-term funding to banks and cut the interest rate it charges on lending in its first concrete steps to cushion the economy and falling markets from the new virus. The move followed sharp equity losses on the spreading outbreak.
Monetary easing aims to support Chinese activity and demand for commodities, but the immediate effect on feed prices is limited while the virus disrupts consumption. Stimulus expectations can briefly support risk assets and industrial commodities.
bloomberg.comFeb 3, 2020After 991 past macro events, USDCNY moved a median -0.0% over 5 sessions (49% higher; middle half -0.3% to +0.3%), and -0.1% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
