Daily Alert – Tuesday 3rd August 2021: Beijing says games are “spiritual opium”

Mark NugentAugust 2021, Daily Alert

Daily Alert – Tuesday 3rd August 2021: Beijing says games are “spiritual opium”

Good morning traders.

Yesterday positive start didn’t last long. China’s official news agency (i.e. the government) criticised the “spiritual opium” and “electronic drugs” of computer games, prompting fears that Beijing will set its sights on online entertainment after their recent swipes at e-commerce, ride-hailing and the online education industries. The mood was further soured by the Fed’s Waller suggesting the bank could make a taper announcement as early as September.

Equities and oil dropped, and the JPY rose.

However, this morning equities are edging back up and the slide in oil seems to have slowed down. The Reserve Bank of Australia boosts the AUD by unexpectedly maintaining their taper plans (a AUD1 billion reduction per month as of September) when analysts had expected the bank to delay the tightening.

Today sees Employment and Unemployment in New Zealand and private sector oil inventory numbers.

I’ll be looking closely at oil and equities.

See you tomorrow.

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