Gold Prices Slide Below $5,000 as Strong Dollar and Central Bank Outlook Weigh on Metals 
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election 
Oil Prices Slide on US-Iran Talks, Dollar Strength and Profit-Taking Pressure 
Dollar Near Two-Week High as Stock Rout, AI Concerns and Global Events Drive Market Volatility 
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record 
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains 
South Africa Eyes ECB Repo Lines as Inflation Eases and Rate Cuts Loom 
Gold and Silver Prices Slide as Dollar Strength and Easing Tensions Weigh on Metals 
Trump Endorses Japan’s Sanae Takaichi Ahead of Crucial Election Amid Market and China Tensions 
U.S. Stock Futures Slide as Tech Rout Deepens on Amazon Capex Shock 
Silver Prices Plunge in Asian Trade as Dollar Strength Triggers Fresh Precious Metals Sell-Off 
Global Markets Slide as AI, Crypto, and Precious Metals Face Heightened Volatility 
Singapore Budget 2026 Set for Fiscal Prudence as Growth Remains Resilient 
Trump Lifts 25% Tariff on Indian Goods in Strategic U.S.–India Trade and Energy Deal 
Dow Hits 50,000 as U.S. Stocks Stage Strong Rebound Amid AI Volatility 
On Monday, the People's Bank of China (PBOC) unveiled a new lending tool aimed at injecting liquidity into the market and bolstering credit flow within the banking system. This initiative comes as trillions of yuan in loans are poised to mature at the end of the year.
New Lending Tool Details
The PBOC's announcement revealed the activation of the open market outright reverse repo operations facility. This measure is designed to maintain adequate liquidity levels in the banking system and expand the central bank's policy toolkit. Approximately 2.9 trillion yuan ($406.58 billion) in medium-term loans are scheduled to mature by December, complicating banks' efforts to finance investments and stimulate growth in the world's second-largest economy.
While the new tool took effect today, it was not explicitly mentioned in the PBOC's open market operations statement. The facility is set to conduct monthly trades with primary dealers, allowing for tenors of less than one year—longer than the typical seven-, 14, or 28-day reverse repos.
Economic Context
Beijing is banking on substantial financial stimulus measures announced in September to rejuvenate lending and investment amid a sharp downturn in the property market and declining consumer confidence. The PBOC has been under pressure to further lower interest rates and enhance liquidity to meet the government's growth target of approximately 5% this year.
Shanghai Securities News indicated that the new tool could help manage liquidity fluctuations over the coming year, particularly in light of the impending expiry of medium-term lending facilities.
