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Politburo meeting says downward pressure is increasing.

Bloomberg is reporting that China leadership is planning more stimulus measures in response to disappointing economic data.

The Politburo meeting concluded that there is more downward pressure on the economy, and that the government is looking to take steps to counter the downturn.  

Yesterday the purchasing managers report showed lower than expected readings as a result of the trade war with the US and the high domestic debt.

The piecemeal approach to the risks have so far not worked. The yuan is at 10 year low levels and approaches the 7.0000 level.  Stocks have also been under pressure. 

There were reports that the US would announce tariffs on all China imports into the US as early as December if the meeting with Xi and Trump at the G20 meeting does not make any meaningful progress.  

The government and central bank have introduced steps to boost liquidity in the financial markets, tax deductions, and targeted measures to help exporters. There was also talk of a reduction in tax on autos to help the slumping auto sector.  So far the impact has been limited. 

ForexLive



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