China Politburo smoke signals

 If U.S. financial conditions continue to ease and implied market volatility remains well-anchored, bulls will stay on the front foot. On the Asian policy front, further evidence that the burst of 'jumbo' hikes is over will also support risk appetite.

The fiscal policy focus this week will be on China, with the Communist Party's Politburo meeting early this month to lay out the government's strategy and guidelines for the year ahead.

The challenges to revitalize the economy, boost growth, shore up the property sector, and navigate a smooth transition out of the zero-COVID policy are immense, well-known, and come against a backdrop of unprecedented protests and social unrest.

Analysts at Goldman Sachs expect policymakers to reiterate a 'supportive' stance in light of weak economic activity recently.

"We might get more hints on the future direction of COVID control policies from this meeting - for example, should policymakers claim victory in the past COVID control and delete the not mentioning of 'dynamic Zero COVID' policy, we would view these as clear signs of more relaxation of COVID control in the near future," they wrote in a note on Friday.

https://news.yahoo.com/marketmind-china-politburo-smoke-signals-214804655.html