Sends

China’s Intervention Sends Stocks Soaring. Powell’s Unlikely to Make That Big a Splash.

The Chinese government just had the sort of impact on markets that the Federal Reserve can only dream about.

In fairness to the Fed, it hasn’t spent the best part of a year undermining the stock market through a wide-ranging regulatory crackdown as Beijing has.

Nonetheless the intervention from China and the ensuing moves in Chinese stocks Wednesday are pretty seismic.

China promised to keep its stock markets stable and implement measures to boost its economy, according to a state-run media report of a meeting of the country’s financial stability and development committee. The committee also stressed that regulators should “actively introduce market-friendly policies.”

Significantly for U.S. investors, the committee said China continues to support companies’ listing of shares overseas and has maintained “good communications” with U.S. regulators, with a cooperation plan in the works. That’s quite the development – just last week the Securities and Exchange Commission named five Chinese companies that could face delisting.

So what’s changed? The pressure on Chinese stocks had ramped up in the past week as regulatory concerns returned and surging Covid cases led Beijing to lock down millions of people. The country’s links to Russia also spooked investors as U.S. officials said the Russian government has asked China for military aid. If it did help Russia, sanctions would surely follow.

Regardless of what’s behind it, China has abruptly changed its tune and it has sparked some huge gains, particularly among tech stocks.


Alibaba’s
Hong Kong-listed shares soared close to 30%, while the e-commerce giant’s U.S.-listed stock was 20% higher in premarket trading. It wasn’t the only one –


JD.com
surged 35% in Hong Kong and


Baidu
rose 20% among others.

The Fed is up next, delivering its decision on interest rates later Wednesday. A 25 basis point hike is expected but the forward guidance and Jerome Powell’s comments have the potential to move markets – just not quite as much.

Callum Keown

*** Join Quentin Fottrell, managing editor, personal finance at MarketWatch, today at noon as he talks with Andrew Keshner, tax reporter, and Greg Robb, senior Washington correspondent, about Russia’s invasion of Ukraine and the impact on the U.S. Sign up here.

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The Fed’s ‘Forward Guidance’ Is Key Today

The Federal Reserve stands poised to begin lifting its short-term interest rates–likely by a quarter-point–and ending emergency bond buying. More important will be Fed Chairman Jerome Powell’s “forward guidance” on how aggressively the central bank will move to rein in surging inflation.

  • The central bank’s two-day meeting, which concludes later Wednesday, comes amid prices climbing at the fastest pace in 40 years and an uncertain geopolitical picture sparked by Russia’s invasion of Ukraine.
  • Powell recently told a House panel he expects to start interest-rate liftoff with a 0.25 percentage point increase, bringing the target rate to a range of 0.25% to 0.5%, while
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Lincoln Project Sends Fake White Supremacists to Virginia GOP Event

  • People with tiki torches posed by Glenn Youngkin’s bus in Charlottesville, Virginia, on Friday.
  • The Lincoln Project, an anti-Trump Republican group, later admitted to being behind the stunt.
  • They said it was to remind Virginians of the 2017 white supremacist “Unite the Right” rally.

A group of people carrying tiki torches turned up to an event for Republican gubernatorial candidate Glenn Youngkin in Charlottesville, Virginia, on Friday, posing in front of his tour bus.

Turns out, they were sent by the Lincoln Project, an anti-Trump Republican group.

The tiki torches were a nod to the 2017 “Unite the Right rally” in Charlottesville, when white supremacists and neo-Nazis marched with tiki torches in hand, with some chanting “Jews will not replace us.”

The stunt came the same week a civil trial began against the rally’s organizers and days before Virginia’s gubernatorial election on November 2.

Local NBC reporter Elizabeth Holmes shared a photo of the group on Twitter, reporting they said something that sounded like: “We’re all in for Glenn.”

 

People online quickly began to suspect there was something strange about it, and Youngkin’s campaign even accused his opponent, Virginia Democratic Gov. Terry McAuliffe, of being behind the stunt.

Vice News identified one of the people in the photo as a “low-level Democratic operative” and said the Lincoln Project admitted it was responsible for the stunt.

“Today’s demonstration was our way of reminding Virginians what happened in Charlottesville four years ago, the Republican Party’s embrace of those values, and Glenn Youngkin’s failure to condemn it,” the conservative group said in a statement.

The statement also said if Youngkin “will denounce Trump’s assertion that the Charlottesville rioters possessed ‘very fine’ qualities, we’ll withdraw the tiki torches. Until then, we’ll be back.”

It was a reference to former President Donald Trump’s remarks that there were “very fine people” on “both sides” at the 2017 rally, during which Heather Heyer was killed when an avowed neo-Nazi drove his car into a group of people.

McAuliffe’s campaign condemned the stunt on Friday evening.

“What happened today in Charlottesville is disgusting and distasteful and the McAuliffe campaign condemns it in the strongest terms. Those involved should immediately apologize,” Terry for Virginia Campaign Manager Chris Bolling said in a tweet.


https://www.businessinsider.com/lincoln-project-sends-fake-white-supremacists-to-virginia-gop-event-2021-10… Read More...