China's Communist Party opens fifth plenum in Beijing
The Chinese Communist Party has begun its fifth plenum in Beijing, a closed-door gathering of the party leadership.
By BBCorp
What happened
China's Communist Party has started its fifth plenum in Beijing.
No further details on the proceedings were reported in the article beyond the opening of the meeting in the Chinese capital.
Why it matters
Plenums are gatherings of the Chinese Communist Party leadership at which policy priorities are discussed and later communicated publicly. Because China is a major consumer of commodities and a central node in global trade, signals on growth, industrial policy or stimulus coming out of such meetings are closely read by commodity and currency desks.
For brokerage clients, the channels are indirect but broad: crude oil and industrial demand expectations, gold as a store of value and a reserve asset, the dollar and other currencies through global risk appetite, and equity indices with revenue exposure to Chinese demand. Market reaction typically depends on what, if anything, is disclosed and how it compares with expectations.
What to watch
Attention turns to any official statements or communiqué released as the plenum proceeds, and to any policy priorities the leadership chooses to make public.
Markets in play
- OilExposure: MediumChinese policy signals feed directly into expectations for the country's energy and industrial demand.
- GoldExposure: LowGold can react to shifts in global growth and reserve-policy expectations tied to Chinese leadership decisions.
- US stocksExposure: LowIndex constituents with China-linked revenue are sensitive to signals on Chinese demand and industrial policy.
Gold