HEI: Surprise: China tips more stimulus as economy falters

© Joerg Stoeber

THE HEISENBERG writes: “Predictably, there were more stimulus hints/promises out of China overnight, a day after trade data for December continued to suggest the domestic economy is faltering. With the front-loading effects now squarely in the rearview and both the official and Caixin PMIs in contraction, the cacophony of stimulus banter is likely to get even louder. Tuesday brought news that China will cut taxes for small companies and the manufacturing sector, will increase the size of local government special bonds and will seek to support infrastructure projects. That’s all according to a statement from the Ministry of Finance. The tax cut promise came with a “on a larger scale” kicker that I guess is supposed to give it some additional market-boosting prowess.”