Doctor Page:What Will G20 and RRR Cut from PBOC jointly Bring to the Crypto Market?|Fish.Pro Comment
This move has caught the market by surprise.Earlier 7th this month,an executive meeting of the State Council pledged to use timely cuts as support to economy,which is interpreted by the majority of analysts to be an imminent target RRR reduction.
As a result,PBOC announced a comprehensive RRR reduction on July 9th, a move that will release a long-term capital by about 1 trillion yuan ($154 billion) into the monetary market.It also announced after the closed A share trades to cut the Deposit Reserve Ratio from July,15th 2021.
FTSE ChinaA50 Index went up in short term after the announcement.
The three major stock indexes have seen sharp gains,among which GEM directly rose by 4% in intraday trading,setting a new high!
In addition,the 3rd Finance Ministers and Central Bank Governors Meeting was held from July 9th to July,10th under the rotating Italian Presidency.G20 members progressed their discussions on global economy and health,support for low-income countries,sustainable financial development,financial sector reform,digital transformation and International tax cooperation.
The focus of this meeting is the the International taxation cooperation.The meeting has “achieved a historic agreement on a more stable and fairer international tax architecture”,according to CCTV news.G20 endorses the reallocation on profits of multinational enterprises as well as an effective global minimum tax and calls on more countries to join in the following consultations.
The International tax reform is promoted to meet challenges of multinational tax policies brought by digitized economy.The long-term reduction on tax rate of transnational enterprises and the “race-to-bottom”competition among countries have provided great convenience to companies which invariably shift their due tax to places known as “Heaven of Tax Evasion”.Some commentators believe that this reform will reshape the current international tax rules that have dominated for nearly a century,opening a brand-new chapter for international taxation system.
S&P 500 Index
Daily Operation Advice
BTC: 35,000 Short,Stop Loss 36,000,First Target Point 32,000,Second Target Point 31,000
ETH: 2400 Short,Stop Loss 2500,First Target Point 2000,Second Target Point 1800
Doge:0.22 Short,Stop Loss0.25,Stop Limit0.18
Above is merely personal opinion for reference only
Doctor Page,guest commentator of Fish.Pro,creator of Time-Space Psychological Trading Method,has 8-year rich experience in investment with unique trading knowledge and strategies. Focusing on dynamic changes of global financial market,Doctor Page is proficient at technical analysis on multi-national policies of central banks as well as basic economic environment and is highly sensitive to both short-term and mid-line markets with a favor on trade models featured by small costs ,hefty returns and high chance for success.