China wants to help (industrial) companies financially

On Friday, the Chinese central bank cut its annual corporate interest rate by 5 basis points to 4.2% and the five-year rate remains unchanged at 4.85% p.a. leave. At the same time, banks have recently seen some tension in their financing, with short-term interbank rates (SHIBOR) rising. So the SHIBOR for 3 months is the youngest with 2.72% p.a. rose to its highest level since June. Obviously, the central bank is currently trying to achieve a difficult balancing act by grabbing hold of the companies and at the same time trying to prevent bubbles in the bond or property market. Especially with regard to the upcoming holiday week - between October 1st and 7th, business in China will be closed due to the national holiday - and subsequent trade talks between China and the US should not be expected to bring any great surprises from China in the next few days , The national holiday also has a special symbolic significance because of the 70th anniversary since the founding of the People's Republic of China. It is all the more important that the official manufacturing PMI (PMI), scheduled for launch next Monday, does not slip further below the 50 mark, which marks a boundary between economic upswings and downturns. Despite the government's support measures, the index did not sustainably rise above 50 this year, having fallen below 50 in December 2018 for the first time since 2016. So a relatively quiet course on the metal markets in the next two weeks is likely to be expected.

Source: Commerzbank Research, Photo: Fotolia