Australia’s December Trade Surplus Expands but Falls Short of Expectations 
Gold and Silver Prices Slide as Dollar Strength and Easing Tensions Weigh on Metals 
Dollar Near Two-Week High as Stock Rout, AI Concerns and Global Events Drive Market Volatility 
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election 
Thailand Inflation Remains Negative for 10th Straight Month in January 
Global Markets Slide as AI, Crypto, and Precious Metals Face Heightened Volatility 
Fed Governor Lisa Cook Warns Inflation Risks Remain as Rates Stay Steady 
Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record 
South Korea’s Weak Won Struggles as Retail Investors Pour Money Into U.S. Stocks 
U.S. Stock Futures Edge Higher as Tech Rout Deepens on AI Concerns and Earnings 
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns 
Silver Prices Plunge in Asian Trade as Dollar Strength Triggers Fresh Precious Metals Sell-Off 
Oil Prices Slide on US-Iran Talks, Dollar Strength and Profit-Taking Pressure 
Dollar Steadies Ahead of ECB and BoE Decisions as Markets Turn Risk-Off 
China Reduces Loan Prime Rate to Support Economic Growth
The People’s Bank of China (PBOC) announced a cut to its loan prime rate (LPR) on Monday, implementing its latest strategy to boost economic growth. The one-year LPR was lowered to 3.10% from 3.35%, slightly more than market expectations of a reduction to 3.15%. Additionally, the five-year LPR, crucial for determining mortgage rates, was cut to 3.60% from 3.85%, exceeding forecasts of a drop to 3.65%.
Aiming to Meet Economic Growth Targets
This rate cut comes as part of Beijing’s broader efforts to shore up the economy amid slowing growth. The Chinese government had previously flagged multiple stimulus measures, including interest rate reductions, to support its 5% annual growth target. These efforts focus on boosting infrastructure projects, countering the property market decline, and restoring investor confidence.
Persistent Economic Challenges
Despite the cuts, China continues to face challenges. The PBOC has consistently lowered the LPR over the past two years, but deflationary pressures remain. Recent economic data for September reflected minimal progress in tackling deflation, signaling that more aggressive interventions may be needed.
Investor Concerns
While the latest stimulus measures show promise, many investors are cautious due to the lack of clarity on their implementation and scale. The effectiveness of these actions in reversing economic downturns remains to be seen.
