Tuesday, May 22 2018 | ASIA TODAY INTERNATIONAL - Reporting the Business that Matters in Asia
Updated: 4 hours 34 min ago
The FOMC left Fed funds rate unchanged. An increase in yields is supported by a soft but sustained increase in Inflation expectations. Term premium remains negative coupled with a low market volatility environment. The baseline remains for a gradual increase in long-term yields with an upward bias for 2018 year-end long-term rates.
Our China Vulnerability Sentiment Index resumed its upward trend in 2018, underpinned by a stronger GDP and on-going efforts to curb financial risks. Housing vulnerability index has seen significant improvement, SOE index rebounded somewhat despite deteriorating earlier. Shadow banking vulnerability index stabilized while Exchange rate index declined on RMB appreciation.
The prospects for the Portuguese economy are positive, although the country still has significant imbalances that could slow the pace of recovery if the reforming zeal shown in the past few years is not maintained.
Since the outbreak of the global financial crisis, and in response to the subsequent European debt crisis, the European Central Bank (ECB) has adopted various measures to stabilise the economy and to aim at achieving its ultimate goal: price stability.
Recently, the possibility of introducing a tax on financial transactions (FTT) as a way to cover part of the pension deficit has come up again in the Spanish public debate. These types of fees are applied to some types of monetary transactions, such as purchases of securities or stock market flotations.