Case Study
1. Macro Environment Background * China's 10 Trillion Yuan Stimulus Package: On 24/9/2024, China’s central bank unveiled a 10 trillion yuan stimulus package aimed at boosting the stock market and property sector to revive the economy. * Market Reaction Before National Day (1/10/2024): Optimism surged
Case Study
1. Macro Environment Background and 2. Scenario Analysis * Macro Environment: Mirrors Case Study (Global Macro): Short Gold - 23 Apr 2024 to 3 May 2024 — rate differentials fuelled carry trades using the Yen for higher-yielding assets. * Scenario Analysis: Positive correlations suggest carry unwinding risks, with BoJ policy shifts and Fed
Case Study
1. Macro Environment Background In response to inflation, global central banks raised interest rates in 2022, except for the Bank of Japan (BoJ), which maintained negative rates. This rate differential fuelled carry trades, with investors using the low-yielding Yen to fund investments in higher-yielding assets like US equities, Gold, and